Concentration of wealth generated
Another dimension of this brighter data point is to know who are the major beneficiaries of this bounty. The graph above shows the value owned by the KMPs as a % of the Total ESOP pool. For these companies put together, KMPs own close to half of the wealth generated. While this number at an industry level is not alarming and quite expected, the variation within these 4 companies is quite stark. For instance, in Zomato, KMPs own 92% of the Rs 5,000 cr wealth, while in Paytm and Nykaa, KMPs own only around a third of the wealth.
Our Surveys indicate that at the industry level, senior management team (normally bigger in size as compared to KMPs) usually get around 70% of the Grants. Concentration in Zomato is quite extraordinary.
The mix seen in companies like Nykaa and Paytm, if replicated across the whole spectrum, will result into real broad based wealth generation which in turn will encourage more entrepreneurship and overall economic growth.