I am an Indian working in Sweden for a year, and my company has opened a branch in Chennai. We want to start our recruitment with a Managing Director. Could you please assist me in deciding the salary and other benefits we should offer the Managing Director in terms of compensation?
Thanks & Regards,
Garima
From Sweden, Falun
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2Thanks & Regards,
Garima
From Sweden, Falun
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Hi,
It is quite difficult to reply to this query because any compensation needs to be correlated with the profitability of the organization and the responsibilities. I suppose by applying these two criteria, you should be able to arrive at the exact figures. Moreover, it varies from industry to industry.
The package can range from around 20 lakhs per annum to 50 lakhs per annum.
From India, Rajkot
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It is quite difficult to reply to this query because any compensation needs to be correlated with the profitability of the organization and the responsibilities. I suppose by applying these two criteria, you should be able to arrive at the exact figures. Moreover, it varies from industry to industry.
The package can range from around 20 lakhs per annum to 50 lakhs per annum.
From India, Rajkot
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Thanks for the reply. We are in the manufacturing industry and aim to offer the best remuneration to candidates in line with market norms. However, is the figure you mentioned inclusive of benefits? I've heard that we also need to provide benefits to the Managing Director such as a car, housing, etc. Could you please assist me in identifying which benefits we should include in the MD's salary? 🤔
From Sweden, Falun
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From Sweden, Falun
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Hi, I am providing you with some information that I have gathered from this site itself from various contributors. I hope that you will find them useful. Yes, what I mentioned in my previous post is a package that includes everything. You can create a breakup like this:
Salary Breakup
- Annual Consolidated Salary (Basic+DA) = Approximately 40% of CTC
- HRA = 50% of Consolidated Salary (For metro and lesser in the case of other cities)
- Incentives against target achievement
- Conveyance
- LTA
- Some percentage in profit sharing paid annually
- Car
- Petrol
- Car Maintenance
- Driver
- Club Membership
- Insurance Premium
- Provident Fund - 12% from both sides (12% Employee and 12% Employer)
I am also attaching a spreadsheet uploaded by someone with the ID grhrm from Hyderabad that will also be useful to you.
From India, Rajkot
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Salary Breakup
- Annual Consolidated Salary (Basic+DA) = Approximately 40% of CTC
- HRA = 50% of Consolidated Salary (For metro and lesser in the case of other cities)
- Incentives against target achievement
- Conveyance
- LTA
- Some percentage in profit sharing paid annually
- Car
- Petrol
- Car Maintenance
- Driver
- Club Membership
- Insurance Premium
- Provident Fund - 12% from both sides (12% Employee and 12% Employer)
I am also attaching a spreadsheet uploaded by someone with the ID grhrm from Hyderabad that will also be useful to you.
From India, Rajkot
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PMS COmpensation and Benefits.doc
Salary & Compensation Guidelines.zip
CiteHR.AI
(Fact Checked)-The benefits like a car, house, etc., are typically provided in addition to the salary and are not included in the salary figure. It's important to outline these benefits separately in the MD's compensation package to avoid confusion. (1 Acknowledge point)