Zerodha Founder Nikhil Kamath Clarifies 100 Crore Salary News on Twitter, Calls it 'Unwanted Noise'

Zerodha co-founder and CEO Nithin Kamath tweeted to address the recent “noise” over reports that he, his brother Nikhil Kamath, and wife Seema Patil each draw Rs. 100 crore salaries annually, saying the actual amount is lower than the reported figure. Nithin Kamath, who is leading the discount brokerage firm, added that the founders salaries “will still be high compared to the norm”. He added that building sustainable businesses and paying taxes is a great step in contributing to the nation. He clarified in a series of tweets that the Zerodha Board has passed an enabling resolution to allow working promoters to draw up to Rs. 100 crore if there arises a need for liquidity.

Kamath also said though he has “no obligation” to clarify but he decided to address the issue because some people were “misinterpreting” the reports about their salaries.

Kamath added that running a business like his (trading) is risky and it's important for promoters to take liquidity out when the firm is “up” to reduce the risk. “We have always done this, 15 percent of profits. This also helps us in supporting our personal investments in small businesses and social causes.”

After reports recently emerged that the three could draw Rs. 100 crore salaries each they were slammed and trolled on Twitter for paying themselves huge salaries. But since the initial criticism, a number of people have come out in their support and applauding their success.

Zerodha began operating on August 15, 2010, aiming to break the barriers between traders and investors in India. So they named the company Zerodha, a combination of Zero and "Rodha", the Sanskrit word for barrier. The company says its “disruptive pricing models” has made it the biggest stockbroker in the country in terms of active retail clients.

Previously, Kamath said Zerodha's profit has more than doubled to Rs. 1,000 crore in FY21 from a year ago. The gains were largely due to growing online trading and stock investments among retail investors.