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

    National

    "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."

     

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