Average Salaries Growth Trends of Indian CEOs
A recently released executives compensation report by global consulting firm Hay Group helps identify some of the leading emerging trends in Indian CEO's average salaries. According to this study, which covered 87 top Indian and MNC CEOs (no family CEOs were eligible) operating across industry domains and looked at sectors like mining, oil and gas, chemicals, automotives, construction, consumer durables, FMCG, retail, telecom, transportation, and power/utilities (Technology companies were not part of the study):
- The average salary of top CEOs in India has risen to Rs 2 crore, up by close to 30% in the last one year
- Some 50% of Indian CEOs are now in the Rs 2 crore per annum salary category and 12% in the Rs 7 crore category.
- Most of the Indian CEOs in the Rs 2 crore salary category were in the Rs 1.4 crore or Rs 1.5 crore pay scale a year ago.
- ConglomerateIndian CEOs who used to get Rs 5.25 crore salary on average a year ago now get about Rs 7 crore
- The average Indian CEO's salary is 2.6 times that of the rest of the executive population, in terms of total cost to company (CTC), excluding long-term incentives.
- There is very little total salaries
differential between top executives across core and enabler functional
- A growing trend of cross-sector employability of Indian CEOs, coupled with scarcity of holistic CEOs (those with experience across functions), has created a scramble for CEO talent in the job market.
- Indian enterprises are hiring function/sector agnostic CEOs, those who are general operational specialists.
- Indian Organizations are willing to pay a premium for leaders with broad-based experience and exposure
- The Indian CEO market has always seen a large pool of "operationally excellent" CEOs, but a constant scarcity of "managing-business" CEOs has driven compensation high. Compensation is expected to further spiral upwards owing to the increasing cross-sector employability of CEOs-the new breed of "Lateral CEOs"
- A global cement major recently recruited an Indian investment banker as CEO of its India operations and that the CEO of an Indian manufacturing company has joined an IT company to lead its manufacturing vertical.