NATIONAL, 3rd OCTOBER, 2024 (GPN): We have a new entrant on the list of highest-paid executives for FY24. And, it’s none other than the former managing director of Poonawalla Fincorp, Abhay Bhutada. For this financial year, his salary was INR 241 crore, which sets a new benchmark for the industry. His professional journey and philanthropic endeavors make him stand out in the list of highest-paid executives.

A New Benchmark for Executive Pay

As the FY came to an end in March 2024, it was a remarkable time for executives who gained handsomely, with Abhay stealing the show with his never-heard-before figure. This record was previously held by A.M. Naik, who had earned 221.5 crore a few years ago. It’s the highest-ever salary an executive has earned from a publicly listed company. It also breaks the norm and stereotypes like these figures are reserved for the old players of the industry.

What makes this achievement so special is that this was given to him when he took an early retirement from his role as the MD of Poonawalla Fincorp. The package includes encashed stock options, which proves that companies are now looking at performance-based incentives linked to a company’s stock success. This trend has seen significant growth in the Asian continent, especially in India, in the past few years.

Abhay Bhutada’s Journey: Beyond the Paycheck

While his salary has been the talk of the town because of such astonishing figures, his contributions to society haven’t gone unnoticed. His time as the MD of Poonawalla Fincorp was full of optimism and growth, as the company continuously showed record numbers in the sheets. That’s why the news of his retirement came as a shock to many in the industry.

His philanthropic work via his organization called Abhay Bhutada Foundation has been in the headlines quite few times now. As the founder and chairman of this foundation, he has tried to help the underprivileged section of the society. His foundation recently delivered STEM kits to rural towns near Pune to make science accessible to all the kids.

India’s Changing Compensation Landscape

This trend has been growing in India as companies have been looking to transform the norm. For a long time, the slot of highest-paid executives was dominated by promoter directors who had stakes in the company. People like Pawan Munjal of Hero MotoCorp, Kalanithi Maran of Sun TV, and many like them have been the usual suspects in the list. But, this year, things changed as six out of the top ten highest-paid professionals were non-promoter directors. It shows that the trend is changing, and professional managers are now being recognized for their role in driving the success of the company. 

What Lies Ahead?

As India’s corporate structure evolves, Abhay Bhutada’s salary is a reminder of the changing dynamics of executive compensation in the country. With a growing focus on performance-linked incentives, we will likely see more professionals topping the charts in the coming years. As things stand, Bhutada’s Rs 241 crore stands as a benchmark that will be hard to surpass, but definitely sets a benchmark for the industry.