Average CEO Remuneration Currently Stands At Rs 13.8 Cr Annually: Report

The Deloitte India Executive Performance and Rewards Survey 2024 found that the average CEO salary is currently Rs 13.8 crore annually, a 40 per cent increase over pre-COVID-19 levels.

Compared to every third CEO in 2020, every second CEO has a target pay of more than Rs 10 crore in 2024. The average compensation for CEOs who were also promoters or members of the promoter family is Rs 16.7 crore. According to industry sources, the ratio of professional CEO remuneration to promoter compensation climbed dramatically over the last four years, from 1.0 to 1.3. 

Indeed, there are two main reasons why a promoter CEO's salary exceeds that of professional CEO compensation. Because promoter CEOs tend to have longer tenures overall, professional CEOs tend to shift more frequently than promoter CEOs. However, it's also crucial to remember that promoter CEO compensation varies greatly, which has an impact on the higher averages.

Forty-five per cent of the BSE 200 companies (excluding PSUs) had a CEO change in the previous five years, according to an analysis of such moves. Internal appointments account for six out of ten newly appointed CEOs. The final quartet of CEOs were recruited from outside.

Despite an increase in CEO salary, over 50 per cent of target compensation is subject to pay-at-risk, which for professional CEOs is significantly greater than promotional CEOs, at 57 per centAverage CEO compensation stands at Rs 13.8 crore a year: Deloitte Report. A quarter of the target remuneration for professional CEOs is provided through long-term incentives, which are typically given through share-linked incentives for most corporations. Among all CXOs in India, COOs and CFOs continue to earn the largest compensation premiums.

On average, CEOs of over Rs 20,000 crore in revenue responsibility make Rs 20 crore per annum. Further, CEO compensation has risen the fastest in technology and lowest in the financial services and consumer sectors.