I have been hearing about the wonderful “packages” of some of the IIT students that are being placed in California in US. So, I thought I should give a perspective on how much an assistant professor’s “package” is worth.
IIT assistant professor’s “package” is Rs. 16,25,77,965.60. If you have difficulty in reading the whole figure, I will simplify it for you, it is more than 16 crores, 25 lakhs. This only includes the salary and housing benefits. No other benefits like hospital facilities, sports, swimming pool, etc. have been included in this calculation.
Since in the calculation of the “packages” of these companies, there seems to be no limit on the time over which this money has been paid. Most of these packages include variable components and stock options, etc, that are paid over a term of five years. I thought why stop at 5 years. So, I have included the salary for 20 years, with an annual increase in salary of 15% (just an increase in dearness allowance, no pay commission increases) with no promotions. So, with the pay commission increases, the package will be even higher.
It is shameful that these companies include a variable component and stocks that they will pay over 5 years (whose value may go down or even zero by the time you get them) in their packages. It is just absurd. It is as absurd as the number that I have come up with the “package” for the assistant professors at IIT.