Average salary of Indian CEOs increased to Rs.11.2 cr: In Financial Year 2022, Indian CEOs got an average compensation of Rs.11.2 crore, with median compensation of Rs 7.4 crore, which is the highest in three years. Click here to Join whatsapp/ telegram study group →
According to the 2022 Deloitte India Executive Remuneration Survey, the average compensation of CEOs in FY21 was Rs 9.4 crore (Rs 6.4 crore median), while in FY20, it was Rs 9.8 crore (Rs 6.9 crore median).
This compensation average includes salaries of both promoter CEOs as well as professional CEOs. It also accounts for long-term incentives (LTIs).
The average compensation of professional CEOs in FY22 stood at Rs 10 crore, with a median of Rs 7.4 crore, showed the survey, which covers over 470 firms across IT, ITeS, services, manufacturing, consumer products, life sciences, and financial services sectors.
In terms of the total cost to companies including LTIs, India Inc paid their CEOs 2.7 times more than chief financial officers, 3.7 times more than their business unit heads, and 4.1 times more than chief human resource officers and heads of sales, the survey said.
The survey noted that the average compensation of CEOs was 2.4 times more than that of chief operating officers (COO), adding that the average salary of chief experience officers (CXO) has stayed mostly consistent over the last three years.
Nearly 84 per cent of short-term incentives (STIs) of CEOs are dependent on company performance, while for CXOs, it was at 50 per cent, the survey stated. It added that about 80 per cent of firms prefer a target-based approach for determining STIs.