Abhay Bhutada_ Setting a New Standard in Executive Compensation.pdf

This presentation, titled "Abhay Bhutada's Salary: A New Aspirational Benchmark for Senior Directors," delves into the remarkable compensation package earned by Abhay Bhutada, the former Managing Director of Poonawalla Fincorp, in FY24. With a record-setting salary of INR 241 crore, Bhutada's pay has become a new standard for senior executives in India. The presentation explores the shift in executive compensation trends, the rise of professional managers in top-earning roles, the growing importance of performance-based incentives, and Bhutada’s broader impact through leadership and philanthropy. It offers insights into how his achievements are reshaping corporate expectations and inspiring future leaders.

1. Abhay Bhutada's Salary:
A New Aspirational
Benchmark for Senior
Directors

2. Abhay Bhutada: Setting a New Standard in
Executive Compensation
Key Point: In FY24, Abhay Bhutada, former Managing Director of Poonawalla Fincorp, set a new
record in executive salaries with an INR 241 crore package.
Objective: Explore how Bhutada’s salary has become a new aspirational benchmark for senior
directors and highlights the changing trends in executive compensation.

3. Bhutada’s Unprecedented Compensation
Bhutada earned INR 241 crore in FY24, the highest salary for a senior executive in a publicly
listed Indian company.
The previous record was held by A.M. Naik at INR 221.5 crore.
Bhutada’s compensation included performance-based stock options, reflecting modern
executive pay trends.

4. Professional Managers on the Rise
Bhutada’s salary is part of a broader trend where non-promoter directors are earning top
compensation.
Historically, the highest-paid executives were often promoter-directors like Pawan Munjal and
Kalanithi Maran.
In FY24, six of the top ten highest-paid executives were non-promoter directors, signaling a shift
toward recognizing professional managers.

5. Emphasis on Stock-Linked Compensation
Bhutada’s package included stock-linked incentives, showcasing a trend where executive pay is
increasingly tied to company performance.
Companies are prioritizing incentives that align executive interests with shareholder value and
company growth.
This trend is particularly significant in India, with many companies following global pay
structures.

6. Philanthropy and Leadership
Bhutada’s leadership at Poonawalla Fincorp was marked by consistent growth and innovation.
His philanthropic work through the Abhay Bhutada Foundation has focused on supporting
education and STEM learning for underprivileged children.
Bhutada’s approach to leadership extends beyond financial success, emphasizing social
responsibility.

7. A New Aspirational Benchmark
Bhutada’s INR 241 crore package sets a new benchmark for senior directors, pushing the
boundaries of what professionals can achieve.
It reflects the changing dynamics of corporate governance in India, where professional
managers are increasingly compensated for driving company success.
Bhutada’s success story offers inspiration to professionals seeking to reach the upper echelons
of corporate leadership.