Growth in executive compensation at India's leading listed companies decelerated in 2023-24 after two years of strong gains.
The cumulative remuneration for key managerial personnel (KMP) or top management of BSE 200 companies rose by 3.9 per cent year-on-year (Y-o-Y) to 8,304 crore in FY24, compared with ₹7,990 crore a year earlier - marking the smallest uptick in the past four years.
This contrasts sharply with the 27.1 per cent growth in FY23 and the 38.8 per cent surge in FY22, according to data compiled by Business Standard Research Bureau.
There was a slowdown in growth of executive compensation despite a strong rebound in corporate earnings last financial year.
The combined net profit of 151 companies sampled within the BSE 200 index climbed 22.3 per cent Y-o-Y to ₹6.07 trillion in FY24, compared to ₹4.96 trillion in FY23. This stands in contrast to a modest 9.3 per cent earnings growth in FY23.
The deceleration in executive remuneration helped ease the burden on corporate profitability. KMP compensation cumulatively accounted for 1.37 per cent of corporate profits in FY24, down from 1.61 per cent the previous year and a high of 2.87 per cent in FY20.
In fact, the ratio of KMP remuneration to corporate earnings in FY24 was the lowest in at least seven years.
This story is from the August 28, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 28, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
A singular life in plural India
In India today it is difficult to imagine a period of uninterrupted communal harmony, with reports of lynching, hate speech and bigotry surfacing with rising frequency.
11 dead in fire after LPG tanker crashes into vehicles on Jaipur-Ajmer highway
An LPG tanker collided with a truck on Friday, sparking a massive fireball that turned a stretch of the Jaipur-Ajmer highway into an inferno in which 11 people were killed and 37 vehicles engulfed in flames.
FMCG firms roll out tailored offerings for golden years
Affluent and health conscious, mature consumers are becoming selective about what they buy. Businesses are stepping up to meet their needs
SPHERES OF INFLUENCE
New districts are being announced more because of demands by influential groups than empirical studies, usually in the buildup to elections
Accenture Q1 showing a shot in arm for IT stocks
Strong US economy bodes well for Indian IT firms, say analysts
Sun Pharma: Down, but not out
Despite short-term blip, pharma major remains favourite among investors
Mirae Asset MF's AUM crosses ₹2 trn mark
Mirae Asset Investment Managers (India) on Friday announced that its mutual fund (MF) assets under management (AUM) has crossed the ₹2 trillion mark on the back of 54 per cent compound annual growth rate (CAGR) in the past five years.
PIL in HC seeks action against Amfi for 'misleading' ads
A public interest litigation (PIL) has been filed in the Bombay High Court seeking directions to Securities and Exchange Board of India (Sebi) to revoke the permissions granted to mutual fund body Association of Mutual Funds in India (Amfi) for \"misleading\" and \"deceptive\" advertisement campaigns under the investor education and protection measures.
IPO frenzy: Six issues fully subscribed; IGI at 13% premium on listing day
The initial public offerings (IPOs) of DAM Capital Advisors, Sanathan Textiles, Concord Enviro Systems, Mamata Machinery and Transrail Lighting, whose issues are on their penultimate day, were subscribed between 1.24 and 37.75 times.
Debt funds to deliver best show in 4 yrs
Strong performance attributed to bond index inclusion and fiscal prudence, say experts
