ICICI Bank seeks shareholder nod for CEO pay hike

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Mumbai: In a notice pursuant to section 19A (2) of the Companies Act 1956 to the bank’s shareholders, ICICI Bank has sought an approval to hike the bank’s MD & CEO (designate) Chanda Kochhar’s salary from upto Rs 10.50 lakh per month to upto Rs 13.50 lakh from May 1, 2009 for the next five years.

Also, an approval is sought to pay salary worth Rs 20 lakh per annum to the current MD & CEO KV Kamath when he assumes the charge as non-executive chairman of the bank, between May 1, 2009 and April 30, 2014. Also, Kochhar would given various entitlements including bonus payments, house rent allowance worth Rs one lakh etc. Kamath would also be entitled to a series of perks like the payment of sitting fees, payment for maintaining the chairman’s office, travel & accommodation expenses towards discharging the bank’s duties etc. According to the latest annual report of ICICI Bank, Kochhar’s gross remuneration was over Rs 1.55 crore whereas Kamath drew Rs 2.78 crore per annum.

The notice also states that the bank’s board expressed the view that Kochhar deep experience across the bank’s businesses and functions would be invaluable in providing stability while at the same charting the bank’s future strategic course in the emerging global environment. As Kamath’s current term as MD & CEO of the bank is due to expire on April 30, 2009; the notice suggests that he has expressed his desire to lay down his executive responsibilities from that date.