Average CEO Salary At ₹13.8 Cr, Up 40% From Pre-Covid Level: Deloitte India's Survey

Deloitte India’s Executive Performance and Rewards Survey 2024 has unveiled a 40% rise in the average CEO compensation, which now stands at ₹13.8 crore, a significant increase from the pre-COVID-19 era.

What Happened: The survey further pointed out that in 2024, every second CEO had a target compensation exceeding ₹10 crore, a stark contrast to 2020 when only every third CEO had the same. Moreover, CEOs who were either promoters or part of the promoter family received an average pay of ₹16.7 crore. Last year, the average pay was around ₹11.9 crore.

According to Anandorup Ghose, partner, CHRO Programme Leader, Deloitte India, “The higher compensation of promoter CEOs compared to professional CEOs is primarily due to two reasons. Promoter CEOs tend to have a longer tenure, leading to less frequent changes compared to professional CEOs. However, it’s also crucial to note that promoter CEO compensation varies greatly, contributing to the higher averages.”

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The survey encompassed over 400 companies spanning various sectors and life stages, excluding public sector companies. The majority of these companies boast a turnover of ₹1,000 crore or more.

The survey also disclosed that over 50% of target compensation is pay-at-risk. For professional CEOs, this figure stands at 57%, significantly higher than the 47% for promoter CEOs. COOs and CFOs continue to be the highest earners among other CXOs in India, with 44% of their target compensation at risk.

The survey by Deloitte India also observed a change in the evaluation and reward of CEO and CXO performance. Companies are now moving towards a more structured approach to bonus payouts. The influence of discretion in compensation decisions is diminishing, as per the report.

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