A minimum pay for CEOs is becoming increasingly typical in recent years. These CEOs think that their pay should reflect the success of their business and shouldn’t be excessive unless it is lucrative.
One illustration is Kunal Shah, the CEO of CRED, who recently revealed that despite running a prosperous fintech business, he only makes Rs.15,000 per month in salary. Shah feels that he shouldn’t be paid a significant salary until CRED starts to turn a profit.
On February 26, the CRED CEO posted his salary during an Instagram “Ask Me Anything” session. Shah responded to a user who expressed surprise at his low pay by explaining that he only makes Rs.15,000 per month since he doesn’t think he should have a large compensation until the business turns a profit. Shah added that he was able to make ends meet on this wage because he sold his prior business, FreeCharge, for a sizable profit.
Shah’s revelation has received a variety of reactions. While many others believe it is just a ruse for him to save on taxes, many people applaud his resolve to wait to accept a large salary until the company is profitable. Other people simply don’t care because he has many other ways to make up for it.
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