Soon after closing of $225 million fund raise, Dream11’s CEO, Harsh Jain received a hike in pay. The organisation has changed Jain’s compensation from Rs 1.2 crore to Rs 4 crore for each annum with impact from 10 April, 2020, giving him an incredible raise of 3.3X when contrasted with his compensation a year ago according to entracker.
Dream11’s operative Indian entity Sporta Technologies spent a total of Rs 42.6 crore on managerial remuneration during FY19, taking a 68x leap from the expenditure of Rs 62.6 lakhs on the same during FY18. The company has not filed an annual report for FY20 yet.
Startups are often criticised for high burn, especially on salaries and remuneration of top-rung and leadership executives. While co-founders in early years of their startup journey usually don’t withdraw a fat pay cheque for various reasons including lack of funds, they get rewarded with exorbitant salaries after reaching a certain threshold in terms of scale, revenue and valuation.
Jain along with Bhavit Sheth has been working towards making Dream11 a multi-billion dollar entity with sound unit economics.
The two are expected to offload their holdings in the recently-concluded round and they may dilute further as Dream11 is expecting more secondary transactions in the coming months.