Guess how much your mutual fund managers take home? While your portfolio may be making gains or losses, the mutual fund manager surely is making a fat sum out of the collective investments made by their unit-holders.
HDFC Mutual Fund’s chief Milind Barve got remuneration of Rs 26.21 crore for fiscal 2015-16. Barve’s pay package included Rs 6.25 crore as salary and Rs 19.96 crore came from exercise of ESOPs (Employee Stock Ownership Plans) that were granted to him earlier.
Prashant Jain, Executive Director and Chief Investment Officer (CIO) with HDFC Mutual Fund, earned Rs 6.16 crore as a salary component and Rs 16.33 crore from ESOPs. These ESOPs were granted over the period of 2008-2013.
The other executives of HDFC MF took home salaries ranging from Rs 1 crore to Rs 13 crore. As many as 38 persons received remuneration in excess of Rs 1 crore.
Reliance MF’s top honcho Sundeep Sikka received a pay package of Rs 13.74 crore — which included Rs 3.5 crore as salary and over Rs 10 crore as a one-time payout.
Sunil Singhania CIO (Equity Investment) took home Rs 8 crore, which also included a significant one-time component.
Reliance MF paid a total compensation of Rs 41.5 crore to its top executives, which included one-time payouts comprising ESOPs as well as perks for marking the completion of 20 years of the fund house.
ICICI Prudential MF paid Rs 5.4 crore to its Managing Director Nimesh Shah, while S Naren, CIO at the fund house earned a salary of Rs 4.75 crore. A total of 15 executives received remuneration of more than Rs 1 crore.
ICICI MF is the largest fund house with an assets under management of Rs 1,75,880.87 crore, followed by HDFC MF (Rs 1,75,779.38 crore) and Reliance MF (Rs 1,58,408.45 crore)
In a move to align executive salary with the interest of investors, Securities and Exchange Board of India’s has directed fund houses directive to disclose the remuneration information of their top-management.
A few mutual fund houses have complied with Sebi’s directive and disclosed the information, others still have to comply with the rule. The market regulator on Monday refused to budge on its directive for mandatory disclosure of top-management salary by mutual funds and said it is a ‘non-negotiable’ requirement and investors must be provided date without any ‘extra filters’.
In March 2016, Sebi directed fund houses to disclose annual salary of all employees earning Rs 60 lakh or above within one month of a financial year, starting with 2015-16.
Accordingly, all fund houses needed to publish the details by Monday, after taking into account the weekend holidays for the last two days.
