It may be recalled that in FY 2012-13, Chanda Kochhar of ICICI Bank had emerged as the highest paid bank CEO in the Country. She received a salary of Rs. 5.12 crore
It was a close call because Aditya Puri of HDFC Bank was within touching distance with a salary close to that figure.
In FY 2013-14, Aditya Puri managed to bargain a 20% increase in his salary which means that he got to take home a salary of Rs. 6.07 crore.
Chanda Kochhar, on the other hand, managed to get herself only a measly raise of 2%, taking her salary to Rs. 5.23 crore.
Shikha Sharma of Axis Bank was a distant third with a salary of Rs. 3.75 crore. She did, however, get a hefty raise over her FY 2012-13 salary of Rs. 2.63 crore.
Ironically, the performance of the respective bank’s stocks on the stock market is in inverse proportion to the salary drawn by the CEO’s.
While the shareholders of Axis Bank and ICICI Bank are beaming from ear to ear at the 40% & 28% YOY returns of the respective banks, the shareholders of HDFC Bank are sporting a glum face at the underperformance of the stock with a 19% YOY return.