At Rs 58.8 Crore, Murali Of Divis Lab Is Highest-Paid Pharma Executive In India
Chairman and Managing Director of Divis Laboratories Ltd. Murali K Divi is the highest paid executive of the Indian pharma industry with Rs 58.8 crore remuneration which includes salary and commission in 2018-19.
According to Divis’ latest annual report, Murali Divi, the promoter-executive, was given a hike of 46.3 percent in his remuneration over the previous fiscal.
The company offered nearly Rs 30 crore to its Executive Director NV Ramana and over Rs 20 crore to whole-time director Kiran S Divi, son of Murali Divi, towards remunerations in the last fiscal.
Murali Divi received close to Rs 57.61 crore through commissions for the year. In FY18, he had received Rs 40.20 crore towards remuneration which included commission of Rs 39 crore.
The percentage increase in the median remuneration for the employees of the company for FY19 was 3.96 percent.
The drugmaker clocked Rs 1,333 crore profit after tax on Rs 5,036 crore revenue for the year 2018-19. When it comes to other pharma players, Dilip Shanghvi, founder and managing director of the country’s largest drug firm Sun Pharmaceutical Industries Ltd. took home just Re 1 as salary and Rs 2,62,800 as perks during FY19.
The country’s second-largest pharma company in terms of revenue, Aurobindo Pharma Ltd. paid Rs 14.6 crore towards remuneration in FY19 to its Managing Director N Govindarajan, a professional belonging to non-promoter category. The remuneration to Govindarajan included salary and perquisites, commission up to 1 percent of the net profits of the company (calculated as per the Companies Act, 2013 subject to a ceiling of Rs 10 crore for each financial year). Aurobindo reported Rs 2,356 crore PAT in 2018-19 on Rs 19,564 crore total revenue.
GV Prasad, co-chairman, managing director and chief executive officer of Dr. Reddy’s Laboratories Ltd., took nearly Rs 12.4 crore home by way of of remuneration in FY19. Prasad, who has been replaced by Erez Israel as CEO from Aug. 1, had received Rs 7.75 crore remuneration during 2017-18.
Dr. Reddy’s PAT was up 92 percent in FY19 at Rs 1,880 crore (revenue Rs 15,400 crore) over the previous fiscal. Umang Vohra, managing director and global chief executive officer of Cipla Ltd. was paid 20.23 percent less when compared to FY18 to Rs 15.03 crore remuneration in 2018-19. Vohra received Rs 18.85 crore in 2017-18.