Genpact CEO Pramod Bhasin took home $2.8m in ’06

In what could be one of the highest paid salaries to a professional CEO in India, Pramod Bhasin, 55, president and CEO of Genpact, earned an annual salary of $2.8 million in 2006. Bhasin’s compensation includes a salary of $610,000, annual bonus of $100,000, stock option awards of $ 971,123 and the rest in pension and retirement benefits and other benefits like housing, security and so on.

Bhasin is one of the founders of Genpact when GE started the company in India and serves as director on the company’s board. “This package would easily put Mr Bhasin amongst the top 5 highest paid investor-backed professional CEOs in the country” says Priya Chetty Rajagopal , VP, Stanton Chase International, an executive search firm.

Genpact’s next highest earning official is V N Tyagarajan, executive VP, business development and head of sales, who earned $1.2 million followed by Mitsuru Maekawa, CEO of Genpact Asia, whose total package was $844,065. Genpact disclosed the information in a preliminary prospectus filed by the company with the US Securities and Exchange Commission on May 11, 2007.
In what is reflective of the growing importance of India in global markets, CEO salaries in India have gone up sharply in the last few years. “There are at least a hundred CEOs earning $1 million in salary in India today,” says managing partner of EMA Partners International K Sudarshan.

Close to half of this salary includes performance-linked bonuses as well as stock options. Some of the highest paying executives are found in industries like large investment banks, telecom companies and banks. Search executives say that CEOs in companies such as IBM, Bharti, Reliance Retail, HSBC, Cairn and Walmart India are earning salaries in the range of $1 million and above. In 2006, India reported the highest salary increase in the Asia Pacific region.
Genpact began as an India-based captive BPO arm of GE Capital. In 2005, GE spun it off as an independent business and renamed it Genpact. The company has 28,000 employees and earned revenue of $613 million in 2006 with a profit of $39.8 million. It’s attrition stood at 32% last year.

Genpact filed a preliminary prospectus on May 11, 2007 for a listing on the NYSE. The company has not disclosed how many shares it will offer for sale and at what price. GE owns about 29% of the company.

source copy+paste: EconomicTimes

Indian Salaries Saw Highest Growth in A-Pac in 2006

Working in India could not have been better at any other time considering the salaries that the market is offering. Employees across industries in India saw their salaries increase between 11.9% and 16% (average 14.4% increase) in 2006 over the previous year, according to Hewitt Associate’s 11th annual Salary Increase Survey released a few days ago. This makes 2006 the fourth consecutive year in which salaries grew by double digits.

India’s salary increase was the highest in the Asia Pacific region. Not surprisingly, China came second to India; but at 8.3% average increase in 2006 over the previous year, its percentage increase still quite behind India.

While forecasts for 2007 are more or less along the same lines as 2006, the numbers for Singapore make one sit up. From an average salary increase of 4.6% in 2006, it is expected to see an increase of 8.9% this year. The Philippines, too, which is seeing increasing international investment, will see a much higher increase in 2007 (8.9%) than in 2006 (8.2%).

Average Salary Increases in Asia Pacific :

Country Year 2006 (%) 2007 (expected) (%)

India 14.4 14.5
China 8.3 8.2
Philippines 8.2 8.9
Korea 7.4 7.4
Thailand 6.5 6.6
Malaysia 6.2 5.9
Australia 4.8 4.4
Singapore 4.6 8.9
Taiwan 4.3 4.4
Hong Kong 4.0 3.9
Japan 2.6 2.7

While salary hikes may be good news for employees in India and other Asia Pacific countries, it may not be so for Western companies that have taken to increasingly source IT and business services from the Eastern hemisphere. Salaries comprise a large component of the total cost of offshoring incurred by customer companies.

Yet, a recent McKisney studies argues that rising wages in India do not impact the overall cost. It presents data to show that other costs — technology, infrastructure, staff productivity, shift utilization — if managed efficiently keep the fully loaded cost of offshoring low.

Yet, India’s offshore market is likely to maintain its low-cost labor advantage over countries such as the U.S.A. and U.K. for at least the next two decades, according to Everest Research Institute’s 2006 Global Sourcing Market Update.

source: GlobalservicesMedia, Everest Research Institute