Employees at India's top brokerages are in for a windfall as several are doling out hefty payouts, along with promotions. Bonuses at some of leading broking firms could range from three to seven months of pay, said top executives. Increments are in the range of 15-20%, they said.
High performers in tech and digital roles may take home increments as high as 30%, they said.
A few companies have just announced bonuses while some are in the process of finalising them.
Despite volatile markets and an erosion in stock prices from all-time highs, broking houses booked higher earnings in the last fiscal year thanks to elevated trade volumes and gains in proprietary books. Broking houses with nonbanking finance company (NBFC) linkages have also gained from products such as margin financing and initial public offer (IPO) funding. The sale of wealth products such as portfolio management services (PMS) and alternative investment funds (AIFs) have also improved the fee-based incomes of broking companies.
Brokerages such as Motilal Oswal Financial Services, IIFL, 5paisa.com and Geojit confirmed handsome payouts. "Last fiscal was a very good one for us with robust volumes. This has reflected in our payouts to the employees," said Sudhir Dhar, executive director and head of human resources at Motilal Oswal Financial Services. The leading brokerage has given an average increment of 17%, while the average bonus was 38% and the average incentive earned was 50%.
Most brokerages calculate annual employee bonus as a percentage of cost to company (CTC).
"This year will be the best year for us in a decade," said CJ George, founder and managing director of Geojit Financial Services.
Average salary increases in India Inc., in comparison, are at about 9% in 2022, according to various surveys.
Leading discount broking platform 5paisa.com has given an average salary increment of 15% this year, up from 12% a year ago. The top performers got much more than that, said Pankaj Adhav, head HR business partner.
"Product managers and software engineers are the biggest earners this year," he said. "We will give ESOPs to the leadership team/critical talent in this appraisal cycle and hiring new talent. Higher bonuses, retention bonuses, and performance- or tenure-linked stock options will also be paid out to key people."
Many companies have also given a record number of promotions this year at a time when attrition is as high as 50-60% in certain digital and tech roles. Overall annual attrition at the junior level has touched a high of 50%, while at the middle and senior level it is around 15%, executives said.
Motilal Oswal has promoted a record number of 1,000 employees in the mid- to senior-level this year, said its HR head Dhar.
"The industry is undergoing a rapid phase of growth and needs the right talent in areas of technology, operations etc. No one wants to lose good talent at this stage of growth," said a top executive at a leading brokerage. "ESOPs and promotions are given to more people for the same reason. Also, broking stocks have done well in the last two-three years which allows good value for ESOP owners."
Angel One CEO Narayan Gangadhar said, "FY22 has been a very good year. Our employees were rewarded on the basis of their performance during the entire last year, which has been phenomenal. We rewarded employees through a combination of cash and stock."