Anup Bagchi vs Sashidhar Jagdishan: How HDFC Bank’s incoming CEO pay compares with his predecessor

HDFC Bank’s incoming managing director and chief executive officer Anup Bagchi is set to receive a higher proposed annual compensation than outgoing CEO Sashidhar Jagdishan, based on the lender’s remuneration disclosures.

HDFC Bank has proposed Rs 35.89 crore in annual compensation for Bagchi for the 2026-27 performance year, compared with Rs 28.65 crore received by Jagdishan in FY26. On the disclosed figures, Bagchi’s proposed annual package is around Rs 7.24 crore, or 25%, higher than his predecessor’s remuneration.

However, the comparison needs to be treated with caution because the stock-option components are valued differently.

Bagchi’s proposed Rs 35.89 crore package

Bagchi’s proposed annual remuneration comprises Rs 8.97 crore in fixed pay and performance-linked variable pay of up to Rs 26.92 crore.

The fixed component includes an annual salary of about Rs 3.32 crore, housing benefits of Rs 1.66 crore, car or conveyance benefits of Rs 54 lakh, retirement benefits and other allowances and perquisites.

The variable component is equivalent to 300% of his fixed pay. Of the Rs 26.92 crore, Rs 8.88 crore will be paid in cash, while Rs 18.04 crore will be awarded through employee stock options.

Half of the cash incentive will be deferred over three years, while the ESOPs will vest over four years.

HDFC Bank has also proposed a one-time joining bonus of Rs 7.35 crore in share-linked instruments, comprising RSUs valued at Rs 3.19 crore and ESOPs worth Rs 4.16 crore. If included, Bagchi’s total potential compensation linked to the appointment could reach around Rs 43.24 crore.

What Sashidhar Jagdishan earned

Jagdishan, who is set to step down as HDFC Bank’s MD & CEO on October 26, received total remuneration of Rs 28.65 crore in FY26, according to the bank’s statutory annual return.

His remuneration comprised gross salary of Rs 14.71 crore, stock-option benefits of Rs 13.53 crore and other benefits of Rs 41 lakh.

This means Jagdishan’s reported FY26 remuneration was substantially weighted towards gross salary and stock-option benefits, while Bagchi’s proposed package places a much larger proportion of potential compensation in performance-linked pay.

For Bagchi, the Rs 26.92 crore variable component accounts for 75% of his proposed Rs 35.89 crore annual package. The non-cash ESOP component alone accounts for Rs 18.04 crore.

Why the stock-option comparison matters

HDFC Bank has specifically noted that the stock-option figures should not be directly compared without considering their different valuation methodologies.

Bagchi’s proposed ESOPs are valued using an indicative Black-Scholes value of Rs 253.42 per instrument at the time of the proposed grant. Jagdishan’s Rs 13.53 crore stock-option benefit in FY26 was reported under the applicable remuneration and accounting treatment.

Therefore, while Bagchi’s proposed annual package is higher than Jagdishan’s FY26 reported remuneration, the difference does not represent a like-for-like increase in cash salary or realised compensation.

At 56, Bagchi will take charge as HDFC Bank’s MD & CEO on October 27, 2026, for a three-year term, succeeding Sashidhar Jagdishan. Currently MD & CEO of ICICI Prudential Life, Bagchi brings over three decades of experience across banking, capital markets, wealth management and insurance. His appointment and remuneration have received RBI approval and await shareholder approval.