Do we ever wonder on how executives or key managerial personnel make decisions based on rational or irrational choices? The whole world of business and life is more speculative and uncertain. Having a path makes things easier and more clearer. The managers or KMPs of the company provides the roadmap for the organisation.
This in turn these KMPs get rewards for not only for the idea part but it is mainly based on the execution. In this article, we will look at the Salaries and remuneration of the top management of Adani Group companies.
Why Adani companies are at the forefront of Indian Growth
After a prolonged period of slowdown in the economy in 2019-20s, India went into recession in 2020 due to the Covid lockdown. There was an initial recovery after the lockdown open then as the economy started to expand from trough to expansionary phase, there were different segments of the economy that required unlocking value.
Selling those assets to private players helped the government to exit those segments that were not profitable. Then Adani Group entered into many industry segments to bring their business expertise and turn them into profitable ones. By entering fields such as ports, coal importing, green energy, power, and airports which were under government control in earlier years.
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These would yield more power on the economic part and can have high leverage for any bargaining part. With India’s economy poised to grow, there are many corporations to bank on the opportunity to make a quick buck. Adani Group from the initial Diamond business to ports portrays the political and money power it holds.
For the economy to grow there should be corporations that generate jobs and can add value for the country. Having power does not only mean problems, it can also be a door of opportunity for companies and groups.
Why is it important to analyse KMP’s salaries in a family-run business?
Analysis of Key Management Personnel (KMP) in a family-owned business is vital for various reasons. It ensures transparency and understandability of the company internals. The balance between family relations and professional management is frequently tricky in family-owned enterprises. Transparency can help eliminate perceptions of favoritism or advantage of power.
Secondly, analyzing KMP salaries ensures that compensation is aligned with industry standards and the business’s financial health. It prevents overpaying for themselves which can erode shareholder’s value and, which can impact morale and retention. Fair compensation also incentivizes performance and ensures that the business retains skilled and experienced leadership.
Furthermore, understanding KMP salaries is critical for financial planning and governance. It allows the business to budget effectively, allocate resources wisely, and maintain profitability. It also aids in compliance with regulatory requirements and best practices in corporate governance.
Finally, analysing KMP salaries establishes a standard for professionalism and accountability in the business. It demonstrates a commitment to sound management practices and can enhance the business’s reputation both internally and externally.
List of Remunerations in Adani Group Companies
Adani Enterprises
Adani Enterprises is one of the companies of the Adani Group. Their portfolio is broadly diversified into the sectors like transport & logistics, energy & utilities, and emerging businesses.
Being listed in 1994, they are focused on businesses related to water management, roads, airports, defence and aerospace, solar manufacturing, data centers, integrated resource solutions, mining, edible oils, foods, and integrated agri products.
In the recently released annual report of FY24, the remunerations were Gautam S Adani – 2.46 crore, Rajesh S Adani – 8.37 crore, Pranav V Adani – 6.46 crore, Vinay Prakash – 89.37 crore. Compared to FY23, Gautam took 2.39 crore, Rajesh took 5.6 crore, Pranav took 4.5 crore and Vinay Prakash took 52.25 crore.
The huge remuneration is taken by Vinay Prakash, who is the CEO of Adani Natural Resources and has PhD in Mining. The majority of the salary is performance-linked or variable pay.
Adani Power
Adani Power, a subsidiary of the Adani Group, leading private thermal power producer. They have a total power generation capacity of 15,250 MW, which includes thermal power plants in Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Gujarat, Chhattisgarh, and Jharkhand, as well as a 40 MW solar project in Gujarat.
Their installed capacity includes 49% based on Coal and Lignite, 6% from Gas and Diesel, 12% from Hydro and small hydro, 2% from PSP and nuclear, 10% from wind, 19% from solar, and 2% from Biomass. This is based on MW for FY24.
The company’s executive director S.B.Khyalia took 5.63 crore in FY24. In FY23, none of the executives of the company took remuneration.
Adani Ports & SEZ
Adani Ports & Special Economic Zone, a port infrastructure company under the Adani group. They are into the operations of port terminals and port infrastructure in India which includes SEZ in Mundra. They also own and operate a private railway to transport container cargo and provide storage, handling, and other logistics services.
Their business segment is majorly into developing, operating, and maintaining the ports services, and ports-related Infrastructure development activities. They earn the majority of the revenue domestically.
They have 13 ports and terminals, 11 logistics parks, 80 MMTPA capacity, 15,000 hectares of Industrial land, and 14.9 Lac sq ft of warehousing for the port’s operations.
Gautam Adani took 1.8 crore and Karan Adani took 5.39 crore as remuneration in FY23 compared to 6.8 crore and 3.9 crore in FY24. In FY24, there was another KMP, Ashwani Gupta who took 3.1 crore.
Adani Energy Solutions
Adani Energy Solutions is a power transmission company in India. It is majorly involved in the activity of transmission of electric energy. They are also engaged in the Agri commodities trading business.
The company operates under the Transmission segment which mainly involves power transmission activities which is the GTD Business, Trading segment, and Smart Metering. It makes most of the revenue from the GTD Business segment.
The company has 21,100+ power transmission lengths, 31,80,000+ distribution customers, 99.60% of availability of the network, and 57,000+ MVA transformation capacity.
In the past 2 years, the KMP of the company did not draw any remuneration from the company.
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Adani Green Energy
Adani Green Energy is one of the largest renewable Indian companies with a portfolio of around 20,434 MW. The company develops, builds, owns operates, and maintains scale grid-connected solar and wind farm projects. The scale is around 30GW of renewable energy capacity with 538 km square of project area. It stands 2nd in the largest solar PV developer in global and had 21,806 million units sale of energy.
The company’s executive directors Vneet S Jaain who took 15.25 crore, and Sagar R Adani took 4.40 crore in FY24 compared to 20.53 crore and 4.37 crore in FY23. Vneet S Jaain took a lower salary compared to the previous year.
Adani Wilmar
Adani Wilmar is a FMCG food company. They offer most of the essential kitchen commodities for Indian consumers, which include rice, pulses, edible oil, wheat flour, and sugar. They also offer a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives, and de-oiled cakes.
The company products involve various brands that offer a broad price range and accustoms to different customer groups. They sell a range of packed products under the following brands: King’s, Raag, Bullet, Jubilee, Aadhaar, Fortune, Fryola, and Fortune VIVO.
Angshu Mallick took 7.78 crore which includes a one-time special incentive on account of the IPO of the company in FY23. In FY24, Angshu took 5.15 crore and Ravindra Kumar Singh took 0.63 crore, and was appointed as whole-time director in FY24.
Ambuja Cements
Ambuja Cements primarily focuses on serving the building and construction sectors, which produces and distributes cement as well as cement-related products. Portland Pozolona cement and regular Portland cement are two of the company’s product offerings.
With operations all around India, Ambuja Cements delivers its goods to warehouses and customers directly through a network of ports, bulk cement terminals, captive ships, and railroads. Additionally, the business offers technical services that work with clients to instruct them on concrete mixing and curing methods.
Neeraj Akhoury resigned as CEO in FY23 and received remuneration of Rs. 22.47 crore and received 1.8 crore as a bonus. Shareholders approved 17.5 crore as an incentive to Neeraj. Then Ajay Kapur was appointed as CEO and whole-time director his remuneration was 3.6 crores in FY23. In FY24, he was paid 9.34 crore.
ACC
ACC produces and markets cement, concrete, and cement-related goods. Based on the product, the company is divided into two segments: ready-mix concrete and cement.
The bulk of the company’s revenue is generated by the Cement division, which supplies cement to retailers of home improvement products as well as the building and construction sectors. Concrete for mass housing, infrastructural, and industrial construction projects is sold by the ready-mix concrete market. India accounts for almost all of the company’s revenue.
The executive director of ACC, Ajay Kapur did not take any remuneration from the company. In FY23, the company was under the direction of Sridhar Balakrishnan who was paid 5.75 crore as incentive and 16.88 crore as salary before he resigned. Then Ajay Kapur took over the company and has not received any remuneration.
NDTV
New Delhi Television which is into operations of three television channels, which includes channels like NDTV 24×7, NDTV India, and NDTV Profit. They assist in the establishment of local television news stations in emerging markets around the world.
Recently NDTV was taken over by Adani Group. Earlier the executive directors: Dr. Prannoy Roy took 1.05 crore and Radhika Roy took 1.49 crore as remuneration. In FY24, Senthil Chengalvarayan took 2.39 crore as remuneration and was earlier editor-in-chief of Network 18 business newsroom.
Conclusion
As we near the end of the article, we have looked into Adani group companies regarding the remunerations & commissions of KMP. These companies are in line with India’s growth. Looking at the company’s salaries & remuneration, which we are analysing, helps us understand the power these family-owned businesses hold over the shareholders.
Especially, with Adani companies they are more prominent than ever. Even looking at the attendance of these directors and analsying their presence at any meetings conducted the company can figure out the importance they provide for the company. Based on many factors shareholders need to understand that analysing the management of any company can change the company’s direction. What do you think about the salaries of Adani company executives? Let us know your views in the comments section below.
Written by Santhosh
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