Ravi Jhunjhunwala, CEO of HEG, raced to the top of the remuneration rankings in FY19 with an almost three times jump in compensation from the previous year, as per ET reports.
Ravi Jhunjhunwala took home Rs 121.27 crore in the last financial year, 180% more than the previous fiscal, after the company posted record profit following a plunge in graphite prices.
Meanwhile, corporate governance watchdogs have cited the sharp decline in the company’s share value.
Jhunjhunwala is followed by Pawan Munjal, CMD of Hero MotoCorp, with Rs 81.41 crore remuneration. S N Subrahmanyan, CEO of L&T, is next at nearly Rs 49 crore, for FY19 so far.
HEG makes graphite electrodes that are a key component for electric arc furnaces that turn scrap into steel.
As all companies have not published their annual reports, Jhunjhunwala could be dislodged from the top ranking once more numbers are available.
For instance, Tech Mahindra CEO CP Gurnani was the highest paid chief executive officer in FY18 at Rs 146 crore. Sun TV chairman Kalanithi Maran was second in that year at Rs 87.5 crore.
Ravi Jhunjhunwala’s salary was Rs 43.33 crore in FY18 and Rs 2.34 crore in FY17.
Jhunjhunwala’s remuneration includes commissions of Rs 118.81 crore, which is 2.5% of HEG’s net profit as computed in accordance with Section 198 of the Companies Act, 2013, said company in its annual report.
As per the Companies Act, 2013, a single manager can get remuneration of up to 5% of net profit or 10% of net profit if there is more than one.
The ratio of his compensation & the median remuneration at HEG was 4045:1. The total staff cost of the company, excluding commissions, was Rs 198 crore in FY19.
For the year ended March, HEG reported a 140% jump in net sales from Rs 2,750 crore to Rs 6,593 crore while its net profit surged 175% from Rs 1,099 crore to Rs 3,026 crore.
However, HEG’s market value has dropped 81% since the share hit its all-time high of Rs 4,950 on October 16 last year.
By: Abhinav Ranjan, Editorial Desk, DKODING Media