Average Salary Of An Indian CEO Is Almost Rs 14 Crore, 40 Percent More Than Pre-Covid Era!

Ever wonder how much a decent company¡¯s CEO makes annually? Well, for all the pressure and targets achieved, the average salary of a CEO in India stands at Rs 13.8 crore PA.

This figure is a result of a 40 percent increase in comparison to pre-covid era.

According to the Deloitte India Executive Performance and Rewards Survey 2024, over fifty percent of this compensation is tied to short-term and long-term incentives.

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Additionally, CEOs who are promoters of members of promoter families take home Rs 16.7 crore on average, as per the report.

¡°Promoter CEO compensation outpacing professional CEO compensation is primarily driven by two factors. Professional CEOs change more often than promoter CEOs due to the longer tenure of promoter CEOs at an aggregate. But it is also important to note that the range of promoter CEO compensation is very wide, and that affects the higher averages.¡±

CEO salary: What is the breakdown?

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According to the Deloitte report, while CEO compensation has risen, more than half of the target compensation is considered 'pay-at-risk'. Among professional CEOs, this pay-at-risk percentage stands at 57%, significantly higher than the 47% observed for promoter CEOs. Additionally, professional CEOs receive 25% of their target compensation through long-term incentives such as share-linked incentives.

What has led to an increase in CEO compensation?

Deloitte reports that CEO compensation in India has experienced high-single-digit annualized growth rates. The significant gap between median and average CEO compensation, at Rs 9.3 crore versus Rs 13.8 crore, suggests a wide range of compensation figures, with some outliers at the higher end.

¡°Large Indian companies with more mature and globally aligned compensation practices are pivoting towards Performance Shares and use of multiple incentive plans for different employee cohorts. Conversations in the boardroom have also shifted from the need for share-based payment to the return from these incentive structures to stakeholders,¡± the report stated.