WOW

No wonder Flipkart is bleeding. Just look at these ridiculous salaries

Quartz india
Quartz india

Salaries of Flipkart employees could put you to shame.

In April 2015 to March 2016, India’s largest homegrown e-commerce company paid over Rs10 crore ($1.5 million) each to six of its employees and over a crore each to 101 others, regulatory filings sourced by data platform Tofler shows.

The compensation to these top-paid employees alone takes the company’s remuneration bill to around Rs300 crore.

Six of the highest paid people at Flipkart in fiscal 2016 were:

Name Designation Age (years) Work experience (years) Remuneration(Rs crore)
Mekin Maheshwari Chief people officer 36 8 35.3
Ankit Nagori* Chief business officer 31 4 21.9
Mukesh Bansal* CEO-commerce platform 41 18 21.8
Sameer Nigam* Senior vice-president 39 10 17.7
Amod Malviya Chief technology officer 35 8 11.7
Rahul Chari * VP – engineering 38 11 10.1

* Indicates employees who left during the year.

Amod Malviya and Mekin Maheshwari left their positions in July and September 2015, respectively, and took up advisory roles in the company.

These remunerations include salary, allowances, leave travel allowances, company’s contribution to provident fund, superannuation fund, and gratuity fund, among other things, according to the filing made by Flipkart to the Registrar of Companies (RoC).

Update: Hours after the post was published, Flipkart responded to our query saying, “The remuneration figures cited include a significant portion of liquidated ESOPs that had been accumulated over the years… The law does not require liquidation of ESOP details to be separately stated and the (RoC) filings have been made by disclosing all the particulars mandated by the law.”

These massive payouts were made even as the company was bleeding.

In fiscal 2016, Flipkart Internet (which operates Flipkart) posted a loss of Rs2,306 crore, more than doubled from a year ago. This despite revenue growing around 140% to Rs1,952 crore.

The payouts are also from a period when the Bengaluru-based company was facing devaluation and difficulty in raising fresh funds at preferred valuation.

In March 2016, investor Morgan Stanley trimmed Flipkart’s valuation by 27% to $11 billion. By April 2016, the company had faced rejections from several potential investors, the Mint newspaper reported.

No comparison

Flipkart’s fierce rival Amazon India was pretty modest in comparison.

In fiscal 2016, the highest-paid employee at Amazon Seller Services, the American company’s main unit in India, was Stephen Walter, the HR director for India and China; Walter got Rs4.29 crore. Amazon’s India head Amit Agarwal received Rs3.16 crore.

Below are the 10 highest-paid employees at Amazon Seller Services in fiscal 2016, according to the company’s RoC filing:

Name Designation Age Experience Remuneration
(in Rs crore)
Stephen Walter HR director, India & China 56 32 4.29
Amit Devendra Agarwal VP India, country manager 42 19 3.16
Nitesh Sunder Kripalani Director, Amazon Video India 35 15 2.41
Samir Kumar VP, category management 44 21 2.27
Mahendra Nerurkar GM, Junglee.com 41 18 2.17
Kishore Thota Sr. manager marketing 43 19 1.96
Gopal Pillai Director & general manager, Seller Services 41 20 1.88
Raghava Rao Director finance, India 45 22 1.83
Rajiv M Mehta Country manager, Kindle, India 41 19 1.73
Kinjal Choudhary Director, operations HR India 45 20 1.69

“We do not discuss specifics of employee remuneration as these are confidential but Amazon India remains committed to offering its employees competitive, market-benchmarked salaries with a challenging career path and fulfilling work environment,” an Amazon India spokesperson told Quartz.

In fiscal 2016, Amazon’s losses and revenue in India more than doubled to Rs3,572 crore and Rs2,275 crore, respectively.

Correction: Earlier, the story had erroneously mentioned that Amod Malviya is 25 years old. He is 35.

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