Revision as of 17:23, 17 January 2018

HR/ human relations

ICICI executives go on to head other banks

Mayur Shetty, Vaidya 5th ICICI-bred exec to head a bank, January 16, 2018: The Times of India

ICICI executives who went on to head other banks, 2008-18
From: Mayur Shetty, Vaidya 5th ICICI-bred exec to head a bank, January 16, 2018: The Times of India

ICICI Group has taken on the mantle of being a leadership factory in the financial sector.

V Vaidyanathan is the latest in the series of ICICI Bank CEO aspirants to head a bank of his own. The merger of Capital First with IDFC Bank will result in Vaidyanathan fulfilling his dream of setting up a universal bank. Over the years, several ICICI Group’s senior executives have moved on to head institutions on their own.

In 2008, Kalpana Morparia, who completed her term on the board as joint managing director, stepped down to head JP Morgan in India.

Shikha Sharma was the next to move out of the group and took charge of Axis Bank in 2009. Sharma headed ICICI Prudential Life Insurance and was a candidate for the top position at ICICI Bank in 2008, which went to Chanda Kochhar — the private lender’s chief finance officer then.

Sharma went on to transform Axis Bank from a branch-oriented institution to a scalable model of ICICI-type business verticals. Around the same time, Renuka Ramnath, head of ICICI Ventures, quit and founded private equity platform Multiples.

Sonjoy Chatterjee, wholetime director of ICICI Bank, quit to head Goldman Sachs’ India operations in 2011. In the same year, Vaidyanathan quit ICICI Pru Life to take over Future Capital — which was rechristened as Capital First. Prior to ICICI Pru Life, he headed the retail lending and card business in ICICI Bank. While putting in his papers, Vaidyanathan said that he would build a new private sector bank. Eight years down the line, he will be achieving his ambition.

In 2015, Zarin Daruwala, former head of corporate banking at ICICI Bank, moved to Standard Chartered Bank to clean up the lender’s corporate loan book.

The most recent former ICICI banker to take over a CEO position is Rajiv Sabharwal — former ED in charge of retail. In September 2017, Tata Capital announced that Sabharwal would join as its CEO and MD from April 2018.

Compared to ICICI, executives in other private groups HDFC Bank and Kotak have tended to stick to their positions long-term.

Earlier the leadership training mantle was held by ANZ Grindlays in the ‘90s and to a certain extent by SBI as the industry opened up.

Senior management compensation

2016, 2017

`ICICI CEO drew Rs 6.09cr remuneration in 2016-17', May 31 2017: The Times of India

ICICI Bank has said its managing director and CEO Chanda Kochhar has drawn Rs 6.09 crore as total remuneration in 2016-17. However, total remuneration of Rs 7.84 crore, including Rs 2.2 crore as performance bonus, was due to her for the fiscal ended March 2017.

The performance bonus is paid to the top management after clearance from the regulator RBI and it is staggered over next few years.

“Remuneration comprises various components including basic salary , allowances and perquisite, PF, superannuation allowances, gratuity and performance bonus. Payment of performance bonus is deferred over a multi-year period,“ ICICI Bank said in a statement.

“So the total compensation paid to our MD and CEO in FY17 stood at Rs 6.09 crore not Rs 7.84 crore,“ it said. According to latest annual report, the monthly basic salary for Kochhar will be within the range of Rs 1,350,000-Rs 2,600,000.

In her message, Kochhar said ICICI Bank is focused on capitalising on growth opportunities. At the same time, the bank is taking steps to address challenges in environment.

“Our large size, capital base, robust funding profile, extensive distribution network, diversified portfolio, presence across the financial services sector and leadership in technology , position us very well to leverage the growth opportunities across the economy ,“ Kochhar said.