The aggregate take-home pay for the leaders of the top ten state-owned banks was less than half that of the top executive of Axis Bank in 2023–2024 as revealed by a study.
The managing director and CEO of Axis Bank were reportedly paid Rs 9.10 crore, including stock options and other benefits, whereas the total compensation of the top 10 state-owned banks was estimated to be Rs 4.46 crore in FY24.
Aggregate Take Home Pay For Leaders Of Top Ten State Owned Banks Less Than Top Executive of Axis Bank
The study has analyzed reports from banks like Punjab National Bank, Canara Bank, State Bank of India, Bank of Baroda, Indian Bank, Central Bank of India, Union Bank of India, Indian Overseas Bank, Bank of India, and Bank of Maharashtra.
The notable distinction in the yearly income of bank executives in the public and private sectors was ascribed to the inclusion of performance incentives in the annual compensation packages of private banks.
The remuneration of a private bank CEO has been observed to depend on a number of variables, including the bank’s overall performance, which includes net profit, the success of its subsidiaries, and dividend payments, among other things.
Employee stock ownership plans, or ESOPs, allow private bank chiefs to own shares in their enterprises, a benefit unavailable to their counterparts in the public sector.
Ashok Vaswani, the MD and CEO of Kotak Mahindra Bank, was reported to have received Rs 1.83 crore in compensation in the previous fiscal year, whilst Amitabh Chaudhry, the MD and CEO of Axis Bank, was said to have received Rs 9.11 crore.
Chaudhry was given 313,300 stock options for FY23, and the Reserve Bank of India gave its approval for the same in FY24, according to Axis Bank’s annual report.
Managing directors and chief executive officers were reported to have received remuneration in the range of Rs 34 lakh to Rs 74 lakh in FY24, according to the annual reports of ten state-owned banks.
MD and CEO of Bank of Maharashtra AS Rajeev Made Rs 74 lakh in FY24
One of the highest earners in his cohort, AS Rajeev, the MD and CEO of Bank of Maharashtra at the time, was reported to have made Rs 74 lakh in FY24.
The MD and CEO of Indian Bank, Shanti Lal Jain, received Rs 47.53 lakh, followed by MV Rao of Central Bank, who received Rs 44.46 lakh.
The chairman of the biggest lender in the nation, State Bank of India (SBI), Dinesh Kumar Khara, was paid an annual salary of Rs 39.42 lakh, while the head of Bank of Baroda was paid Rs 44.38 lakh in FY24.
According to reports, Khara received a dearness allowance of Rs 12.42 lakh and a basic allowance of Rs 27 lakh in 2023–2024.
Additionally, reports suggest that Debadatta Chand, the managing director and chief executive officer of Bank of Baroda, was paid a total of Rs 44.38 lakh, comprising Rs 39.01 lakh in salary and Rs 5.37 lakh in benefits.
Bank of Baroda said in its annual report, “The Managing Director & CEO and Executive Directors (whole time directors) are paid remuneration by way of salary as per rules framed by the Government of India. At present the Bank has no Stock Option Scheme.”
