The Average CEO Salary in India is...

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CEO Compensation in India Sees Significant Rise Amidst Diversity in Compensation Structures


A recent report by Deloitte India sheds light on the burgeoning CEO compensation landscape in India. The average CEO compensation now stands at ₹13.8 crore, marking a substantial 40% increase from pre-COVID-19 levels. Notably, over half of this compensation is tied to short-term and long-term incentives, reflecting the evolving nature of executive pay structures.

Anandorup Ghose, Partner and CHRO Programme Leader at Deloitte India, underscores the disparity in compensation between promoter and professional CEOs. While the former tend to enjoy higher compensation, the wider range of promoter CEO salaries significantly impacts the average figures.

Deloitte's findings reveal that CEO compensation growth rates have been consistently high, albeit with a notable gap between median and average compensation figures, indicative of varied compensation structures within the industry.




The report also highlights the evolving trends in long-term incentives, with a shift towards Performance Shares and a decline in the prevalence of stock options. This reflects a broader trend among large Indian companies towards aligning compensation practices with global standards.

In assessing CEO and CXO performance, companies typically employ a balanced scorecard approach, encompassing both financial and non-financial metrics. However, financial company-level goals continue to dominate incentive structures.

Furthermore, an analysis of CEO changes in BSE 200 companies reveals a dynamic landscape, with 45% of companies witnessing CEO changes over the past five years. Notably, a majority of new CEOs are internally appointed, reflecting the focus on grooming talent from within.

It's important to note that the data presented is based on the Deloitte India Executive Performance and Rewards Survey 2024, which surveyed over 400 organizations, excluding public sector companies. The wide-ranging diversity in compensation structures underscores the complexity of the CEO compensation landscape in India.






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