Anup Bagchi vs Sashidhar Jagdishan: How HDFC Financial institution’s incoming CEO pay compares along with his predecessor

Nonetheless, the comparability must be handled with warning as a result of the stock-option elements are valued otherwise.

Bagchi’s proposed Rs 35.89 crore bundle

Bagchi’s proposed annual remuneration contains Rs 8.97 crore in fastened pay and performance-linked variable pay of as much as Rs 26.92 crore.

The fastened element contains an annual wage of about Rs 3.32 crore, housing advantages of Rs 1.66 crore, automotive or conveyance advantages of Rs 54 lakh, retirement advantages and different allowances and perquisites.

The variable element is equal to 300% of his fastened pay. Of the Rs 26.92 crore, Rs 8.88 crore can be paid in money, whereas Rs 18.04 crore can be awarded via worker inventory choices.

Half of the money incentive can be deferred over three years, whereas the ESOPs will vest over 4 years.

HDFC Financial institution has additionally proposed a one-time becoming a member of bonus of Rs 7.35 crore in share-linked devices, comprising RSUs valued at Rs 3.19 crore and ESOPs value Rs 4.16 crore. If included, Bagchi’s whole potential compensation linked to the appointment may attain round Rs 43.24 crore.

What Sashidhar Jagdishan earned

Jagdishan, who is about to step down as HDFC Financial institution’s MD & CEO on October 26, acquired whole remuneration of Rs 28.65 crore in FY26, in response to the financial institution’s statutory annual return.

His remuneration comprised gross wage of Rs 14.71 crore, stock-option advantages of Rs 13.53 crore and different advantages of Rs 41 lakh.

This implies Jagdishan’s reported FY26 remuneration was considerably weighted in direction of gross wage and stock-option advantages, whereas Bagchi’s proposed bundle locations a a lot bigger proportion of potential compensation in performance-linked pay.

For Bagchi, the Rs 26.92 crore variable element accounts for 75% of his proposed Rs 35.89 crore annual bundle. The non-cash ESOP element alone accounts for Rs 18.04 crore.

Why the stock-option comparability issues

HDFC Financial institution has particularly famous that the stock-option figures shouldn’t be straight in contrast with out contemplating their totally different valuation methodologies.

Bagchi’s proposed ESOPs are valued utilizing an indicative Black-Scholes worth of Rs 253.42 per instrument on the time of the proposed grant. Jagdishan’s Rs 13.53 crore stock-option profit in FY26 was reported beneath the relevant remuneration and accounting remedy.

Due to this fact, whereas Bagchi’s proposed annual bundle is greater than Jagdishan’s FY26 reported remuneration, the distinction doesn’t characterize a like-for-like improve in money wage or realised compensation.

At 56, Bagchi will take cost as HDFC Financial institution’s MD & CEO on October 27, 2026, for a three-year time period, succeeding Sashidhar Jagdishan. At present MD & CEO of ICICI Prudential Life, Bagchi brings over three many years of expertise throughout banking, capital markets, wealth administration and insurance coverage. His appointment and remuneration have acquired RBI approval and await shareholder approval.