Zydus’ Sharvil Patel may get fattest cheque in Gujarat Inc

Sharvil Patel, deputy managing director (Dy MD) of Zydus Cadila (also known as Cadila Healthcare), could soon become the highest-paid executive of Gujarat Inc, leaving the current holders of the honour, Vivek Jain of Gujarat Flurochemicals Ltd (GFL) and Gautam Adani of the Adani Group, behind.

Son of Pankaj Patel, CMD of Zydus Cadila, Sharvil Patel had drawn Rs1.1 crore as total pay package from the company during FY’09.Now, a proposal has been moved for shareholders’ consideration at the company’s annual general meeting to be held on July 29, to increase his annual package up to 5% of the company’s net profit with effect from April 1, 2010. 

Once the proposal is approved - there is every likelihood of it getting the nod - his pay package could increase over 20-fold to Rs25-30 crore. The arithmetic is easy. Zydus Cadila posted a net profit of Rs505 crore for FY’10. If Sharvil Patel’s remuneration is fixed at 5% of the net profit, his remuneration will come to Rs25.25 crore per annum. Further, if the company could continue the 66% profit growth it achieved in FY’10, than sky is the limit for him.

Given the fact that the promoter group holds 74.79% stake in the company, it is almost certain that the resolution on pay revision will get shareholders’ approval.

Sharvil Patel was appointed as deputy MD of the company for a period of 5 years from April 1, 2007. He is responsible for the general conduct and management of the business and affairs of the company. At the company’s board meeting held on April 29, it was decided to revise Sharvil Patel’s remuneration with effect from April 1, 2010 till the remaining period of his tenure.