Independent Director Payment: The country’s top companies included in Nifty 50 are spending money generously on their independent directors. According to experts, the reason for this is the increasing workload on these directors and their demand. Companies do not want to leave them. They are paying up to Rs 1 lakh for attending board meetings.
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New Delhi: It is said that time is very valuable. This is also happening. Many companies of the country are paying more money to their special ’employees’ in exchange for time. The top blue chip companies of the country have started paying more money to their independent directors. This is when these independent directors are not regular employees of the company, but are no less than any common employee. In the last 5 years, the salary given to them by the companies has more than doubled. This information has come to light in the data shared by Exec-Rem Advisors Company with our associate Economic Times. Exec-Rem Advisors is a specialized executive compensation advisory firm.
Income has increased so much
According to the data, the average compensation of independent directors in the major companies of Nifty 50 has increased by 106 percent from Rs 42.3 lakh in FY 2019 to Rs 87.4 lakh in FY 2024. In the last financial year itself, the salary has increased by 25 percent.
Companies are increasing salary because
Experts say that the salary is being increased because companies want to ensure that they get adequate time and attention from independent directors. This is because their roles are becoming increasingly complex and their demand is also increasing. In such a situation, they have to deal with many challenges and problems. Many important issues of the company have to be monitored.
More time needed
Anubhav Gupta, Managing Director of Exec-Rem Advisors, said that the role of independent director has become very demanding. They need more time to complete the work of the company. These tasks include board meetings and other important tasks. He said that directors should be well compensated for their time and value.
Know, how much has the salary of independent directors increased?
Good income means long term guarantee!
Anubhav Gupta said that if a director gets good money for his time and value, he can spend a long time in that company. In India, the fee for attending every board meeting for independent directors is up to Rs 1 lakh.
