Zerodha founders to be paid Rs 100 crore annual salary each – Times Now

The two brothers Nithin and Nikhil Kamath, who founded the online brokerage firm Zerodha, along with Nithin’s wife, Seema Patil will soon get a cool Rs 100 crore each in annual salary compensation, according to a special resolution passed by the company’s board earlier this month.

The company’s board in its special resolution cleared a basic salary of Rs 4.7 crore per month and allowances totalling Rs 300 crore per year.

The three founders, if they accept the resolution will be the highest-paid promoter/CXOs in India. In FY20, the highest-paid promoters of listed companies include Kalanithi Maran of Sun TV who got Rs 87.5 crore and Hero MotoCorp’s Pawan Munjal who received Rs 84.6 crore in annual salary.    

Zerodha, which is now India’s largest stock brokerage firm, will also initiate a buyback of shares but at a valuation of $2 billion, double from last year’s buyback.

“Everyone holds ESOPs & continuously get new options too. We ran a buyback last year at $1 billion valuation & we will this year at $2bil. Maybe conservative valuations, but our business risks are high,” Nithin tweeted on Friday.

Zerodha made over Rs 1,000 crore in revenue and Rs 422 crore in profit in the financial year 2020.

Nikhil had earlier said the brokerage doesn’t need to go public as it is under no pressure to raise funds or give an exit to investors. The company is also averse to raising funds from the market.

“We don’t need the money, so there’s no point in raising money just because someone is ready to give it to you. We are profitable, have zero debt. And we don’t spend on marketing and advertising which is probably the single biggest reason for folks raising money”.

“We don’t want to grow just for sake of growth with random businesses. We want to build things around our core competency, do it well,” Nikhil tweeted in April.