HDFC's Bagchi to become India's highest-paid bank CEO at ₹35.9cr
What's the story
HDFC Bank has proposed an annual remuneration package of up to ₹35.9 crore for its incoming MD and CEO, Anup Bagchi. The overall compensation package could go up to ₹43.24 crore with a one-time joining bonus worth ₹7.35 crore in stock-linked incentives. If approved, this would make Bagchi the highest-paid bank CEO in India, surpassing the total remuneration of outgoing CEO Sashidhar Jagdishan by a huge margin.
Approval process
Shareholder approval sought for Bagchi's appointment and proposed remuneration
HDFC Bank has sought shareholder approval for Bagchi's appointment and proposed remuneration.
The proposal, which has already been approved by the Reserve Bank of India (RBI), is being voted on by shareholders through a postal ballot.
Electronic voting is open from October 8 to November 6.
This comes as part of HDFC Bank's efforts to revive retail loan growth, improve margins, and strengthen investor confidence following governance concerns and post-merger integration challenges.
Remuneration details
Breakdown of Bagchi's proposed annual remuneration package
Bagchi's proposed annual remuneration package includes a fixed pay of ₹8.97 crore and performance-linked variable compensation of up to ₹26.92 crore, three times his fixed pay.
The fixed pay includes a basic salary of ₹3.32 crore, housing benefits worth ₹1.66 crore, car allowance worth ₹54 lakh, retirement benefits and more.
The variable compensation will be paid partly in cash and partly through employee stock options (ESOPs).
Compensation structure
Details of the variable compensation and joining bonus
Of the variable compensation, ₹8.88 crore will be paid in cash while ₹18.04 crore will be awarded through ESOPs, which are valued at ₹253.42 per option under the Black-Scholes model.
The stock options will vest over four years while half of the cash incentive will be deferred over three years.
Bagchi also gets a one-time joining bonus consisting of restricted stock units worth ₹3.19 crore and ESOPs worth ₹4.16 crore, both vesting over four years.
Comparison
Proposed annual compensation nearly double Bagchi's ICICI package
Bagchi's proposed annual compensation is nearly double his FY26 package at ICICI Prudential Life Insurance, including stock options.
Based on an indicative Black-Scholes valuation of the options granted to him at the insurer, his compensation could increase by nearly 90% from an estimated ₹18.9 crore to ₹35.9 crore.
To note, outgoing CEO Sashidhar Jagdishan received total remuneration of ₹28.65 crore in FY26 while Deputy Managing Director Kaizad Bharucha received ₹26.32 crore during the same period.