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Independent directors’ pay more than doubles in 5 years, HR News, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>Independent directors in the 75th percentile of Nifty 50 companies earned an average of Rs 1.04 crore in FY23, up from Rs 67.6 lakh in FY18</p>
Independent directors in the 75th percentile of Nifty 50 companies earned an average of Rs 1.04 crore in FY23, up from Rs 67.6 lakh in FY18

Bengaluru: Independent directors at India’s top blue-chip companies have seen a sharp rise in their compensation as their roles become increasingly challenging amid mounting business complexities, intense stakeholder scrutiny, and stricter regulatory requirements.

The median compensation for independent directors at these companies has more than doubled to Rs 72 lakh in FY23, from Rs 35.5 lakh five years ago, an analysis of Nifty 50 companies by specialised executive compensation advisory firm, Exec-Rem Advisors shared with ET has revealed.

Independent directors in the 75th percentile of Nifty 50 companies earned an average of Rs 1.04 crore in FY23, up from Rs 67.6 lakh in FY18. At the lower end, companies in the 25th percentile paid independent directors an average of Rs 43.8 lakh, more than double from Rs 19.18 lakh in FY18, the study showed.

The study analysed 37 of the Nifty 50 companies, excluding public sector undertakings and banking and insurance companies since non-executive director pay is regulated in these industries by RBI and IRDAI respectively.

While increases in compensation have happened across the board, those in the lower quartile have seen a bigger jump. Companies in the 25th percentile have seen median compensation more than double from Rs 19.18 lakh in 2018; in…


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