Source | economictimes.indiatimes.com | Saumya Bhattacharya, ET Bureau
India Inc. paid its CEOs an average compensation of Rs 11.2 crore in FY22, with median compensation at Rs 7.4 crore, the highest in three years. In FY21, the average CEO compensation was Rs 9.4 crore (Rs 6.4 crore median) while in FY20, the average compensation stood at Rs 9.8 crore (Rs 6.9 crore median), according to the 2022 Deloitte India Executive Remuneration Survey. This includes compensation for both promoter CEOs as well as professional CEOs and takes long-term incentives (LTIs) into account.
For professional CEOs, the average compensation stood at Rs 10 crore, with a median of Rs 7.4 crore. On average, more than half of the total compensation for CEOs is variable. The survey covered more than 470 companies across manufacturing, consumer products, IT, ITeS, services, life sciences and financial services sectors.
“Limited and highly sought-after talent pool, the talent that is highly fungible within and even across sectors, and continued gap to global pay levels contribute to the increase in executive pay,” said Anubhav Gupta, partner, Deloitte. “At the same time, boards, promoters and shareholders are focusing on linking a larger part of the pay to performance.”