A survey released revealed a notable increase in the average annual compensation for chief executive officers (CEOs) in India, rising by 40% to US$ 1.7 million (Rs. 13.8 crore) compared to US$ 1.2 million (Rs. 9.8 crore) in 2020. Over the past four years, the number of CEOs earning over US$ 2.4 million (Rs. 20 crore) annually has doubled, with 75% of all CEOs in India now earning more than US$ 6,00,673 (Rs. 5 crore) annually.
However, the survey also highlighted a compensation disparity between promoter and professional CEOs. While the average compensation for promoter CEOs rose by 14% to US$ 2 million (Rs. 16.7 crore), professional CEOs saw an 8% increase to US$ 1.6 million (Rs. 13 crore). Moreover, the prevalence of stock options or Employee Stock Ownership Plans (ESOPs) in CEO compensation has declined from 68% to 49% since 2019, with more companies opting for long-term incentives based on performance. Additionally, most companies prefer appointing home-grown CEOs, with 6 out of 10 new CEOs being internal promotions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.