The company has informed the Ministry of Corporate Affairs (MCA). This has led to a debate over the salaries of top executives of companies, as employees get less than a fraction of their annual package.
The debate has once again erupted regarding the annual salary of Zerodha founders Nitin Kamat and Nikhil Kamat. It is being told that both of them have received a salary of Rs 72-72 crore this year.
The company has given this information to the Ministry of Corporate Affairs (MCA). This has led to a debate over the salaries of top executives of companies, as employees get less than a fraction of their annual package.
Kamat Bhai is the highest paid among start-up companies in FY 2023. These people are at the top position, while Oyo CEO Ritesh Agarwal is at the second position with an annual salary of Rs 12 crore. Whereas two years ago, the salary of both Nitin and Nikhil Kamat was Rs 100 crore. Even then there was controversy, after which Nitin issued a clarification.
He told that this information is wrong. He did not get that much salary. The Kamat brothers earned Rs 100 crore as directors at Zerodha, while CEO Nitin’s wife Seema Patil earned Rs 36 crore.
Expenditure up to Rs 380 crore
According to a report, apart from the founders, Zerodha has spent up to Rs 380 crore on the salaries of its employees in the financial year 2023-24. This also includes the director’s salary. In FY 2023, the company has spent a total of Rs 623 crore on employees. Whereas in the financial year 2022 this expenditure was Rs 459 crore. Out of these Rs 623 crore, Rs 236 crore has been spent on ESOPs given to employees.
Zerodha is a discount brokerage firm
Zerodha is a discount brokerage firm that offers both retail and institutional broking services. Apart from this, it also provides the facility to invest in mutual funds, commodities and bonds. It was established in the year 2010. Zerodha allows investors to buy and sell shares at very low fees. It is the largest brokerage firm in the country in terms of number of clients. Its headquarters is in Bangalore. The company’s retail base has increased from 20 lakh to 50 lakh during the pandemic.
Gave clarification two years ago
In the year 2021, Nitin Kamat had told why the board of Zerodha had finally approved to pay him and his brother a salary of Rs 100 crore. He had claimed that this was not the actual salary he received but more than half of it was tax.
Kamat had said that the figure given was not correct. Such news was misleading and the company’s decision was being misinterpreted. Giving clarification on the salary, he had said that Rs 100 crore is not his actual salary, which comes in his account, but the promoter of the company can take a salary of Rs 100 crore in case of need of cash or any kind of risk. He said that he did not expect that this much attention would be given to it.
He had further said that the truth is that the salary received will be less than this stated figure, yet it will be more than the norm due to de-risking related to brokerage firms. He had said that while the actual salary would be less. Promoters do not make profits through salary because it is also taxed and they pay about 50 percent of it in tax. Wrote about this earlier also.
