• In FY22, the average salary of Indian CEOs exceeds pre-pandemic levels at Rs 11.2 crore

    National
    In FY22, the average salary of Indian CEOs exceeds pre-pandemic levels at Rs 11.2 crore

    "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.

    color:black;letter-spacing:.15pt">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.



    color:black;letter-spacing:.15pt">"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."