Larsen & Toubro Ltd non-executive chairman AM Naik has set a new record for the highest-ever cash compensation received by an Indian corporate executive, with the husband-wife duo of Sun TV Network Ltd following closely behind.
Naik received Rs 89.26 crore in cash compensation for the year ended March 2018. It included retirement benefits of Rs 77.68 crore, according to the engineering giant’s latest annual report. His term as the executive chairman of India’s largest engineering company had ended on 30 September 2017.
In 2016-17, Naik’s cash compensation was Rs 78.9 crore.
Naik’s total pay package for 2017-18 increased to Rs 137.24 crore after including the stock options exercised during the period.
The 13% rise in Naik's cash compensation was higher than the 9% increase in Larsen & Toubro’s consolidated revenue from operations to Rs 1,19,862.10 crore for 2017-18 but far lower than the 22% growth in the company's net profit to Rs 7,370 crore.
Sun TV’s Kalanithi Maran and Kavery Kalanithi received a cash compensation of Rs 87.5 crore each in 2017-18. It includes salary, ex gratia and bonus. In the previous year, they got Rs 77.9 crore each.
Earlier this month, Kalanithi Maran and Kavery Kalanithi had asked the company’s board to limit their remuneration for 2018-19 to a sum not exceeding the remuneration they earned in 2017-18.
The 12% increase in the Marans' cash compensation matched a similar rise in Sun TV Network’s consolidated revenue from operations to Rs 2,963 crore for the year through March 2018 but was a tad faster than the 10.2% increase in the company's net profit to Rs 1,135.41 crore.
Tech Mahindra Ltd managing director and chief executive CP Gurnani's total remuneration was Rs 146.19 crore in 2017-18, inclusive of stock options exercised during the year, keeping him in the list of best-paid executives. He had earned Rs 3.87 crore in cash compensation.
Gurnani had topped the list of highest-paid executives in 2016-17 and 2014-15.
Naik was the highest paid in terms of cash compensation in 2016-17. He was followed by Kalanithi Maran and Kavery Kalanithi. Other executives who received the highest cash compensation in 2016-17 include Pawan Munjal (Hero MotoCorp); DB Gupta (Lupin), Murali Divi (Divi’s Labs), Onkar Kanwar (Apollo Tyres), PRR Rajha (Ramco Cements), HM Bangur (Shree Cement) and Jayadev Galla (Amara Raja Batteries).