ICICI Bank managing director (MD) and chief executive officer (CEO), Chanda Kochhar took home a total remuneration of Rs. 7.85 crore in the previous financial year 2016-17, a 64 per cent jump over the Rs. 4.79 crore she received in the financial year of 2015-16, according to the bank’s annual report. The above compensation to Ms Kochhar includes a basic salary of Rs. 2.67 crore, performance bonus of Rs. 2.20 crore, allowances and perquisites of Rs. 32 lakh and contribution to gratuity of Rs. 22 lakh.
It, however, excludes employee stock options of Rs. 13.75 lakh, which is subject to the approval of Reserve Bank of India (RBI).
The jump in Ms Kochhar’s overall pay was driven by the Rs. 2.2 crore performance bonus, which she got last fiscal. In the fiscal year 2015-16, she did not get any performance bonus due to the dismal financial performance of the private lender. ICICI Bank had posted 87 per cent decline in its net profit for the January-March quarter of fiscal year 2015-16.
Ms Kochhar’s basic pay in the last fiscal was increased by 15 per cent compared to 12 per cent increase in the median remuneration of 82,841 employees of ICICI Bank, India’s biggest private lender said in its annual report.
She was the third-highest paid banking chief after HDFC Bank’s Aditya Puri and Axis Bank’s Shikha Sharma in FY16. Mr Puri earned a remuneration of Rs. 9.7 crore while Ms Sharma took home Rs. 5.5 crore for FY16.
ICICI Bank offered an average 15 per cent hike in basic salary to all its executive directors and a total variable pay of Rs. 7.56 crore in FY17. In FY16 none of ICICI Bank’s executive directors got performance bonus.
Executive director NS Kannan, who was the second highest paid executive in ICICI Bank in FY17, got a remuneration of Rs. 5.39 crore, up 62 per cent from Rs. 3.32 crore a year ago.