Nithin Kamath Clarified His 100 Crore Salary
Nithin Kamath and Nikhil Kamath, the founders of Zerodha, a financial investment firm, have reportedly earned huge annual salaries of ₹72 crore each in the Financial Year 2023 (FY23). This information, revealed through their company’s filings with the Ministry of Corporate Affairs (MCA), has sparked a discussion about the significant pay gap between top executives and other employees within start-up companies.
This high salary has put the Kamath brothers at the top of the list for annual pay among start-up owners for FY23, surpassing OYO CEO Ritesh Agarwal, who earned ₹12 crore in the same period.
It’s worth noting that two years ago, the Kamath brothers were reported to have a salary of ₹100 crore each, but Nithin Kamath clarified that this wasn’t the actual salary they received. While both brothers were listed to have earned ₹100 crore as Zerodha’s directors, the actual drawn-in amount was lower. Additionally, Nithin Kamath’s wife, Seema Patil, received a remuneration of ₹36 crore.
Zerodha CEO Nithin Kamath clarified his extremely high salaries
Explaining the situation, Nithin Kamath shared that the reported figure of ₹100 crore wasn’t their real salary. Instead, it was an approved amount by the board for liquidity needs. He highlighted the tax implications, mentioning that drawing high salaries incurs nearly 50% in taxes, making it inefficient for promoters to take out profits through salaries.
Zerodha’s annual report for FY23 showed an employee benefit cost of ₹623 crore, out of which ₹380 crore was allocated to salaries, while the remainder was used for ESOPs settlements. This sheds light on the significant disparity between executive compensations and those of other employees within the company.
