What percent of the profit should be the promoter remuneration?

(Dhruv Rishi Dev) #1

When do you start to doubt the promoters, especially in a family owned business, where each person is holding a position and withdrawing salary from the company. Is there a threshold you keep?

(Chirag) #2

I am not sure about the answer to that question. But I am interested in knowing the ideal ratio between the top management’s pay and the worker’s pay.

At one point Infy, when Murthy was the CEO, had the lowest ratio.

(Ghanisht Nagpal) #3

How much would you pay a manager for your own business? See a stock a business you own.

(lokeshwer) #5

Slightly relevant question. The remuneration of directors of a public company (combined) should not exceed 10% of net profit. But I came across DCM Sugar’s AR and found the 3 directors pay to be 5 Crores each or 15 Cr+ combined. The net profit from consolidated P&L statement is 122 Crores. Are there any exceptions to this company act of ceiling limit (10% of net profit)?

Refer Page 36 of DCM 2017 AR