According to a special resolution issued by the company’s board, Nithin and Nikhil Kamath, the brothers who started what is now India’s largest stock brokerage business Zerodha, and Seema Patil, Nithin’s wife who has been promoted to whole-time director, can earn up to Rs 100 crore apiece.
This year, the corporation will also conduct a repurchase, similar to the previous year, but at a much higher valuation — $2 billion. “Everyone has ESOPs and is always getting additional possibilities. We conducted a repurchase last year at a $1 billion value and will do it again this year at a $2 billion value. Although our valuations are cautious, our business risks are significant. Personally, my proudest moment throughout this trip has been” Nithin tweeted.
In FY20, Zerodha, a bootstrapped start-up, produced over Rs 1,000 crore in sales and Rs 442 crore in profit – a remarkable success in the start-up market, when many firms are losing money.
Its board of directors enacted a special resolution stating that the three — Nithin, Nikhil, and Seema — will each get a base salary of Rs 4.17 crore per month, coupled with allowances totaling Rs 300 crore per year.
Though not precisely comparable, their compensation will exceed Infosys CEO Salil Parekh’s annual compensation package of Rs 49.68 crore in 2020-21, with more than half of that amount coming through stock option exercise.
Later, in an interview with Business Standard, Nithin stated that Zerodha was not considering going public because “either you want money or you want to provide some of the investors an exit.” We are not under any duress.”
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