ValuePickr Forum

What percent of the profit should be the promoter remuneration?

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?

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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.

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

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

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I want to know ideal value or rough value of:

Ratio of the remuneration paid to Directors compared to median employee’s.

Is 40 or 50 times good one? or is very high?

Other rules about remuneration is well written here.

I just asked about director’s remuneration compared to avg salary of employees.

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Hi, this question seems not answered clearly, I had the same doubt.

I humbly request veterans like @hitesh2710 bhai, @Yogesh_s ji to help in this. .

Thank you.