"25 percent of CEO compensation was in the form of long-term incentives" (e.g. ESOPs). Long-term incentives accounted for 20% of pay for CXOs, according to the report. In most roles, the size of the company had a greater influence on pay levels than the industry in which the company operates.
Digital Desk: With a shift in emphasis from
cost optimization alone to talent retention, CEO pay has now surpassed
pre-pandemic levels. According to a Deloitte survey, this is the first survey
year in which the average CEO Total Compensation has surpassed Rs 10 crore to
Rs 11.2 crore on Total Cost to Company with Long Term Incentives (LTI).
It should be noted that
the median total compensation for a CEO is Rs 7.4 crore. CXO compensation has
also increased from 2021 levels. According to the report, the top paid CXO
roles continue to be COO, CFO, and Business Unit Head.
"25 percent of CEO compensation was in
the form of long-term incentives" (e.g. ESOPs). Long-term incentives
accounted for 20% of pay for CXOs, according to the report. In most roles, the
size of the company had a greater influence on pay levels than the industry in
which the company operates.
According to the report,
the increase in pay levels is accompanied by a strong performance linkage. 51
percent of the CEO's pay is "at-risk" or variable, which means that
the realised earnings from this component could be zero in the event of a poor
share price and/or fundamental company performance. Similarly, 41 percent of
CXO pay is "at-risk."
Despite rising pay, the
report notes that executive talent remains highly mobile within and across
industries. "At least one CEO change has occurred in two of the five
companies studied since 2016."
