On the grounds of buoyant market, larger transaction volumes, and opening of more than 10 million new demat accounts, various stockbrokers have planned to hand out hefty bonuses and increments to their employees this year as a result of which employees of these firms are in for a windfall.
This is all the more significant due to the fact that it comes when most of other sectors or industries are giving muted or nil incentives and bonuses to employees in the wake up coronavirus hit economic activities.
Increments In Range Of 10-18%
For India’s leading broking firms, bonuses could be anywhere between six to nine months of salary (cost-to-company) whereas the increments could be in the range of 10-18%.
The publication while citing industry sources also said that the exceptional performers, such as account opening and large-ticket trade facilitation may get fatter bonuses ranging from 120-300% of annual CTC. It is a peculiarity of the brokerage firm that bonuses are calculated as a percentage of CTC.
Brokerages Against Other Sectors
Whereas for other sectors, in 2021 average increment stands around range of 7-8%. Founder and MD of Geojit Geojit Financial Services said that all time high increment has been observed by the market. This shall translate into handsome performance-based bonus payouts for the good performers. According to him 2021 could have been one of the best year in the past decade.
Handsome payout have also been confirmed by brokerages including Motilal Oswal, IIFL and Zerodha. Executive Director and Head HR of Motilal Oswal Financial Services, Sudhir Dhar said that despite the pandemic, not only the broking sector was not impacted but also it scaled new highs. This shall also reflect in employee payouts.
With a four-year low as well as both all-time highs, both in a span of just seven months it can be said that this year has been a roller coaster when it comes to the equity markets. As of today, the 30-share indice Sensex is trading 96% above the levels touched in March last year.
Rather than investing through the mutual fund route, many retail traders are investing directly in the market due to the volatility in the markets. On top of that, direct retail participation in the stock market has been proliferated due to work from home.
As far as new account opening is concerned, In 2020 Zerodha have seen a 100% jump and also on the basis of new customers giving incentives to their employees every month.
Founder of one of India’s largest stockbroking firms, Zerodha, Nithin Kamath said that some of the their best performing employees are earning as much as 20 months of salary as cash bonus at the end of the year
Since trading activity has picked up significantly during the year, the company has been rewarding its employees in multiple ways.
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