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New Benchmarks in Executive Pay: Abhay Bhutada Tops the List of India’s Highest Paid Professionals

 India’s corporate world has a new leader in the race for the highest-paid professionals, and it’s Abhay Bhutada. The former Managing Director of Poonawalla Fincorp took home a staggering Rs 241 crore in FY24, setting a new benchmark in the world of executive compensation. His payout, which includes stock options, surpasses the previous record of Rs 221.5 crore held by A.M. Naik of L&T. For someone just stepping down from an executive role, Bhutada’s compensation is an impressive achievement, showcasing how stock options can redefine executive pay scales.

Abhay Bhutada


This monumental compensation package is reflective of a broader trend in the Indian corporate world. According to a VCCircle analysis, six out of the ten highest-paid executives in India are now professional managers rather than promoter-directors. This marks a significant shift in how corporate India values professional talent and performance. Historically, the top slots were dominated by promoter-led pay structures, which heavily relied on fixed salaries and bonuses. Now, the focus is shifting toward a more dynamic and performance-driven pay model.

Also Read: Abhay Bhutada Foundation and the Future of Community Health

In fact, Tata Sons’ N Chandrasekaran, who holds the second spot on this list, took home Rs 135.3 crore in FY24—a 20% increase from last year. His compensation has crossed the Rs 100 crore mark for the second consecutive year, signaling his stronghold at Tata. His ability to navigate Tata through global market challenges and drive its businesses forward has solidified his place as a high performer in India’s corporate arena. Similarly, Wipro’s Thierry Delaporte made a significant mark with Rs 167 crore, more than doubling his previous year’s compensation, which speaks volumes about his contributions to Wipro’s growth trajectory.

For a finance student, these figures are more than just numbers—they’re a glimpse into how executive pay structures are evolving. The use of stock options, which are tied to company performance, is becoming increasingly common. This means that executives are now more accountable for their company’s growth and profitability. The better the company performs, the more valuable their stock options become, leading to potentially huge paydays like those seen by Bhutada and Delaporte.

Interestingly, Bhutada’s compensation package is not just a personal achievement; it’s part of a broader trend where stock options are taking center stage in executive compensation. Stock options align the interests of executives with those of shareholders, making them a win-win for both parties. This shift is evident across various industries, from technology to finance, where stock options are now a key component of executive pay.

Also Read: Who is Abhay Bhutada?

The changing landscape is not only affecting public companies. Privately held firms and subsidiaries of multinational corporations are also adopting similar pay structures. Executives in these firms often receive a significant portion of their compensation through stock options, which ties their pay to the performance of the entire business.

In contrast, traditional promoter-led compensation packages are starting to look less competitive. Promoters like Hero MotoCorp’s Pawan Munjal and Sun TV’s Kalanithi Maran, who have long topped the charts, are now seeing their annual pay hover around Rs 80-85 crore. While these figures are still impressive, they are being overshadowed by professionals who are now making bigger bucks through stock-linked compensation.

Overall, Abhay Bhutada’s salary for FY24 symbolize a turning point in India’s corporate pay landscape. As companies continue to embrace performance-linked rewards, the traditional pay structure is gradually being replaced, making way for a new era in executive compensation. The increased focus on stock options and performance incentives is likely to continue, pushing the boundaries of what top executives can earn.

Also Read: Abhay Bhutada Tops the List of India's Changing Landscape of High-Paid Executives

For a finance student looking to understand the dynamics of executive pay, this shift presents a fascinating case study. It’s not just about who’s making the most money, but why they’re making it. As more companies adopt these new models, understanding the nuances of performance-based pay will become even more crucial for future finance professionals.

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