Record-breaking Salaries: Zerodha Founders Kamath Brothers Earn Nearly ₹200 Crore in FY23!
Zerodha, a prominent stockbroking platform, witnessed its founders, Nithin and Nikhil Kamath, drawing a combined compensation of ₹195.4 crore in the fiscal year 2022-23 (FY23). As reported by Entracker.com, both brothers, who also serve as whole-time directors, received an annual remuneration of ₹72 crore each during this period.
The Growth in Remuneration and Employee Benefits
During the previous fiscal year, Zerodha’s board approved a remuneration of up to ₹100 crore for each of its three directors. Moving into FY23, there was a substantial increase in employee benefits costs, rising by 35.7 percent from ₹459 crore in FY22 to ₹623 crore.
The company’s total salary expenditure, inclusive of directors, amounted to ₹380 crore. Notably, out of the ₹623 crore spent, ₹236 crore was allocated to Employee Stock Ownership Plans (ESOPs) which were settled in cash.
Tech Issues and Apologies
Recently, founder Nithin Kamath took to social media platform X (formerly Twitter), issuing an apology for the inconvenience caused to Zerodha users due to consecutive tech issues on November 6 and December 4. In his post on X, Kamath expressed his regret, referring to a previous business update in August where he had mentioned the absence of significant tech issues for a few years. Unfortunately, two episodes occurring in quick succession during the last two months impacted between 5 and 20 percent of Zerodha’s active customer base.
Zerodha’s Valuation and Competitive Landscape
Zerodha’s self-assessed valuation has witnessed a remarkable growth of almost 80 percent, reaching $3.6 billion or ₹30,000 crore. This sharp increase occurred since 2021 when the firm announced a ₹200 crore Employee Stock Ownership Plan (ESOP) buyback plan. However, this year, Zerodha faced stiff competition from Groww, which surpassed it in terms of active users on stockbroking platforms. According to data available on the National Stock Exchange (NSE), Groww boasted 6.63 million active users, edging ahead of Zerodha’s 6.48 million by the end of September 2023.
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