Nithin Kamath, Co-founder and CEO of the Zerodha broking platform, took to Twitter to clarify the recent news of Zerodha founders drawing a whopping Rs 100 crore annual salary. Zerodha’s board of directors recently passed a resolution that approved Rs 100 crore salary per annum to Co-Founders Nithin and Nikhil Kamath, and Seema Patil, whole-time director and wife of Nithin.

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Calling the attention around the salary decision "unwanted noise", Kamath said that the news headlines were misleading and while the private company had no obligation to clarify they were doing so as the decision was being misinterpreted.

I’m surprised by the unwanted noise around this whole salary news of @nikhilkamathcio, Seema (my wife), & me. The headlines are misleading. We are a private company & no obligations to clarify, but we thought maybe we should, as there are folks who are misinterpreting this. 1/7

— Nithin Kamath (@Nithin0dha) May 30, 2021

Kamath clarified that the Rs 100 crore figure is not the actual salary being drawn but instead a maximum figure that promoters can draw for liquidity and risk requirements.

Kamath tweeted, "Firstly the reported figure isn’t the actual salary being drawn. This is an enabling resolution that allows us as working promoters to draw salaries up to the number in case of liquidity requirements. Didn’t anticipate that this would get this much attention."

Firstly the reported figure isn’t the actual salary being drawn. This is an enabling resolution that allows us as working promoters to draw salaries up to the number in case of liquidity requirements. Didn’t anticipate that this would get this much attention. 2/7

— Nithin Kamath (@Nithin0dha) May 30, 2021

Kamath added that while the salaries drawn will be lower than the reported figure, it will still be higher than the norm because of “de-risking” relating to brokerage firms.

“While the actual salary will be lower, it will still be high compared to the norm. Promoters don't take out profits through salaries as it is tax-inefficient, you end up almost paying 50 percent in taxes. I had written about this before,” he explained on Twitter.

While the actual salary will be lower, it will still be high compared to the norm. Promoters don't take out profits through salaries as it is tax-inefficient, you end up almost paying 50% in taxes. I had written about this beforehttps://t.co/Dyvvo6Gc4G

6/7

— Nithin Kamath (@Nithin0dha) May 30, 2021

Recently Entrackr reported about the Rs 100 crore per annum salary for Zerodha co-founders Nithin and Nikhil Kamath and Nithin’s wife Seema Patil, a whole-time director in the company.

The Kamath brothers faced criticism on social media including from their industry peers after the news of the Rs 100 crore annual salary became public.

Kunal Shah, founder of CRED tweeted, “My salary is ₹3L/annum. I should have started a discount stockbroking company to add more zeros to my salary,” tagging Nithin Kamath.

My salary is ₹3L/annum.

I should have started a discount stock broking company to add more zeros to my salary.

Cc: @Nithin0dha

— Kunal Shah (@kunalb11) May 30, 2021

But many others have expressed their support to Kamath, especially after he furnished his explanation on the matter.

Vijay Shekar Sharma, Founder Paytm, tweeted, "While you are nice to offer an explanation (sic) but you don’t need to, Nithin. You got to keep building, keep inspiring and keep winning. Success is the best answer to every question. And outlier success like yours, even better.”

While you are nice to offer explanation but you don’t need to @Nithin0dha .

You got to keep building, keep inspiring and keep winning.

Success is the best answer to every question. And outlier success like yours, even better.