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Zerodha founders, Seema Patil to take home ₹300 crore salary – Hindustan Times

Zerodha founders Nithin and Nikhil Kamath and Seema Patil, Nithin’s wife, will now draw a salary of up to 100 crore each every year, according to a special resolution passed by the stock brokerage firm’s board. The Kamaths and Patil will get a basic salary of  4.17 crore every month each as well as perks and allowances of the same amount.

Nithin Kamath told Mint that the approval may not essentially mean that the founders would draw out  100 crore as final salaries from the company. “It is just the upper limit and may differ from the actual salaries we are drawing from the company. We have always drawn a certain portion of the profits and kept it away to mitigate any kind of company risks in the future,” he said.

The online brokerage firm also aims to roll out a buyback plan for its employees worth  200 crore at a self-assessed valuation of $2 billion, Mint reported on Friday. It is expected to be rolled out in July.

Eighty-five per cent of Zerodha’s employee base or nearly 850 employees will be eligible to participate in this buyback. It will allow employees to sell up to 33 per cent of their vested employee stock ownership plans (ESOPs) to the company at a valuation of $2 billion.

Zerodha converted itself into a public limited company in 2019 and at present its employees own 6-6.5 per cent stake through ESOPs.

“We continue to run Zerodha in the most cost-effective way and have gross margins up to 60 per cent to 70 per cent. Our ambition is to keep rewarding our employees who have contributed to this journey, along with the annual growth they achieve for Zerodha. The idea is to give 10 per cent of our profits to buybacks every year,” said Zerodha co-founder Nithin Kamath.

Kamath told Mint that Zerodha more than doubled its profit to  1,000 crore For the fiscal year ending March 2021. Zerodha made  442 crore in profit in fiscal 2020 and posting a 15 per cent growth in revenue at  1,093.64 crore, up from  950 crore in FY19.