The salaries paid to CEO of top mutual funds has increased lately in the past year. In my opinion, the awareness to invest the savings was enrolled in the citizens during the last few years. As the enrolment for the funds increased so did the salaries of CEO of top mutual funds. The business growth has taken an upward curve and so is the reason for the increased salaries. Milind Barve, with HDFC Mutual Funds being the highest-paid executives.
There are CEOs of mutual funds who have seen a downfall in their remuneration like Aditya Birla’s Sunlife Mutual Fund, DSP Mutual Fund. It has dropped by almost 19% during the review period.
The salary increment was decided on the basis of 2018-19 profitability which was an all-time high for the industry and was decided for April-May, 2019.
Except for the month of March, there was an upsurge in the overall mutual fund industry. Barve, claimed that the top slot was for 7.43crores and his package has increased by 3% from 7.23 crores in 2018-19.
Apart from SBI Mutual Fund, fund houses like Kotak and UTI have gained salary hike immensely as Barve is followed by CEO of Kotak Mutual Fund, Nilesh Shah which has witnessed 68% hike in his salary.
CEO of ICICI Prudential Life has a gain of 12% that is currently 6.98 crore from 6.25crore in 2018-19. The salary of Sanjay Sapre, president of Franklin Templeton Mutual Fund was not available for 2019-20 as the company’s financial year ends in September. But his salary by the end of September is stated as 3.50 crore.
And similarly, almost every Mutual Fund House has seen an increase in the salaries of respective CEO’s. SEBI directed all the fund houses to disclose their annual remuneration of all employees whose earning crosses 1.02 crore or above within one month of the fiscal year.
his is part of SEBI’s effort to promote transparency in remuneration policies so that it is involved with the interest of the investors. Few of them have complied with the directives of SEBI and disclosed the information others still have to abide by the rule.
The asset under management of the mutual fund industry which comprises of 44 players rose up to 27 lakh crores by the end of March 2020. As said correctly, mutual funds are subject to market risk and currently owning the market.