09-04-2025 12:00:00 AM
PTI New Delhi
The median compensation for non-promoter or professional CEOs in India now stands at Rs 10 crore, up 13 per cent over the previous year, according to the Deloitte India Executive Performance and Rewards Survey 2025.
Only 40 per cent of the total CEO compensation components is fixed and the remaining 60 per cent is at risk. Short-term incentives or annual bonuses comprise 25 per cent of total CEO compensation and long-term incentives constitute the balance of 35 per cent. According to the survey, the pay for other CXOs like COOs, CFOs, CHROs, CMOs and CSOs over the last year saw an increase, ranging between 7 to 11 per cent.
Approximately 60 per cent of total CXO pay is fixed while the remaining is equally split between short-term and long-term incentives. COOs and CFOs continue to be the highest-paid executive positions after the CEO, with a total compensation nearing Rs 4 crore.
The sixth edition of the Deloitte India Executive Performance and Rewards Survey was launched in September 2024 as an India-specific B2B survey. More than 400 organisations participated in the survey, and it did not include any public sector companies, Deloitte India said in a statement.
Anandorup Ghose, Partner, Deloitte India, said, "CXO compensation continues to rise in India with this talent pool remaining restricted and consequently in high demand. We are yet to observe any negative impact of the ongoing correction in the equity markets on CXO compensation".
That may come through in next year's numbers given the high linkage of CXO compensation with equity prices, Ghose said. "Apart from the CEO, we observe significant compensation corrections in the legal, risk and compliance functions where absolute compensation has historically lagged other functions".
The survey points to an increased focus on holistic functional or business performance assessments in short-term incentives, beyond being purely financial, at a CXO level. However, long-term incentives are driven more through a singular focus on financial performance. Most companies continue to use a scorecard approach while assessing CEO and CXO performances, comprising financial and strategic priorities.