How Promoters Earn: Dividends, Salaries

Some of India's most prominent promoters are among the highestpaid executives in the country. Others take no salary at all.

- Dipali Banka & Nehal Chaliawala

A Mint analysis of Nifty 50 companies reveals a stark divide in how promoters who actively run their firms pay themselves. While some draw hefty compensation packages, others forgo salaries entirely. Yet in both camps, most earn far more through dividends than through direct pay.

At the top of the pay scale are three automotive industry veterans: Pawan Munjal of Hero MotoCorp, Rajiv Bajaj of Bajaj Auto, and Sidhartha Lal of Eicher Motors. Kalanithi Maran of Sun TV and KM Mammen of MRF Ltd also rank among the highest-paid promoters in India's listed space.

On the opposite end are promoters such as Mukesh Ambani of Reliance Industries Ltd, Nandan Nilekani of Infosys Ltd, Deepinder Goyal of Eternal (formerly Zomato), Rahul Bhatia of InterGlobe Aviation, and Mohit Burman of Dabur. All have officially waived their salaries. TVS Motor managing director Venu Srinivasan draws a nominal remuneration of 1 crore.

Promoter pay carry broader implications for corporate governance. In India, resolutions on promoter compensation are not classified as related-party transactions, allowing promoters to vote on their own pay. In companies with concentrated promoter ownership, this can lead to approval of high compensation packages with minimal resistance, raising potential conflicts of interest and concerns over transparency.