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Zerodha Founders Can Get Salary Up To Rs 100 Crore | India News


BENGALURU: Everything is in the family. The founders of the online brokerage firm Zerodha, Nithin Kamath, his brother Nikhil Kamath, and Nithin’s wife, Seema Patil, can take home 100 million rupees in salary, according to resolutions passed in a company EGM held at early this month.
If they take that amount, it would place them among the highest paid Promoters / CXOs in India. Among listed companies, in fiscal 2020, Sun TV promoter Kalanithi Maran took home Rs 87.5 million.
Nithin said YOU which is just an enabling resolution and does not mean they will necessarily take that amount. He said the company doesn’t see a reason to sell fundraising shares. So one of the ways to generate liquidity for promoters is a salary. Dividends and buybacks are other options.
“We have been setting aside 5-10% of our earnings each year to support our investment philosophy and support causes close to our hearts. We doubled our profit in fiscal year 21 to over Rs 1 billion. We allocate a portion to bonus payments, ”he said.
The Companies Law prescribes a ceiling for salaries in public companies. But Section 197 of the Act allows a company to pay compensation in excess of the prescribed limit subject to approval by members at its general meeting, said Saurabh Agarwal, director of Kennis, a corporate advisory firm.
Zerodha, founded in 2010, discontinued the Indian brokerage business with a fixed charge of Rs 20 for futures and options and intraday trading, and nothing for other longer-term trading, contrary to the industry standard of charging a percentage of the operation. During the pandemic, its retail base grew from 2 million to more than 5 million. These 5 million users contribute 15% of all retail trade volumes.

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