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Indian CEOs' Pay Growth Slows to 5% Amid Stock Market Dip

Median pay for professional CEOs in India rose 5% to approximately Rs 10.5 crore in FY26, marking the slowest growth rate since the pandemic. The muted increase is attributed to poor equity market performance, which reduced the value of stock-linked awards that constitute nearly a third of total compensation. Among other CXOs, chief financial officers saw the largest pay gains, with median compensation reaching around Rs 4.5 crore. Remuneration committees are increasingly adopting multiple long-term incentive plans tailored to different employee groups rather than a one-size-fits-all approach.

Key Points: Indian CEO Median Pay Rises 5% to Rs 10.5 Crore in FY26

  • CEO pay growth slowest since pandemic
  • Stock awards form one-third of compensation
  • CFOs saw largest pay gains among CXOs
  • Shift to multiple long-term incentive plans
2 min read

Indian CEOs' median pay rises 5 pc to Rs 10.5 crore in FY26: Report

Median CEO compensation in India grew 5% to Rs 10.5 crore in FY26, the slowest pace since COVID, due to subdued equity market performance.

"CXO compensation decisions in India have shown great maturity. - Anandorup Ghose, Deloitte India"

New Delhi, March 30

Median compensation for professional chief executives in India rose 5 per cent year‑on‑year to about Rs 10.5 crore in FY26, marking the slowest pace of growth since the COVID‑19 pandemic period, a new report has said.

The report from Deloitte India's said the muted rise was due to subdued equity‑market performance, which reduced the value of stock‑linked compensation - a significant component of executive pay.

The business advisory firm found that nearly one‑third of CEO pay is linked to stock awards, making total compensation dip significantly due to poor returns in equity markets over the past 12 to 18 months.

Pay increases for other Chief Experience Officers (CXO) ranged between 4 per cent and 10 per cent, with chief financial officers seeing the largest gains given high attrition, focus on capital efficiency and expanded board‑level responsibilities with direct shareholder accountability. Median compensation for Indian CFOs stood at around Rs 4.5 crore, the report said.

Further, the firm said that a chief digital officer role is increasingly emerging as a CXO role and that the CXO performance assessment remains robust in India.

"CXO compensation decisions in India have shown great maturity. Market volatility and downside risks have increased further recently amid ongoing geopolitical risks. We do not expect any knee-jerk reactions from boards and remuneration committees, and they are likely to change course depending on how domestic and external events unfold," said Anandorup Ghose, Partner, Deloitte India.

"While CXO performance is assessed on both financial and non-financial strategic metrics, and the evaluation is data-driven, we see discretion being applied to determine CXO rewards outcomes. This helps organisations align long-term business roadmaps to compensation strategies while continuing to focus on accountability," the report said.

Rather than a one-plan-fits-all approach with respect to stock awards, remuneration committees and CHROs are increasingly using multiple long-term incentive plans for different employee cohorts marking a major shift in India Inc's remuneration strategies.

- IANS

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Reader Comments

P
Priya S
The rise is only 5%, which is quite modest considering inflation. It shows boards are being responsible and not giving out huge hikes when markets are volatile. The focus on long-term incentives over short-term gains is a good shift for India Inc. 👍
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Rohit P
CFOs getting the biggest hike makes sense. In this economic climate, managing capital and answering to shareholders is the toughest job. A good CFO can save a company crores. Rs 4.5 crore seems justified for that pressure.
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Sarah B
Interesting to see the emergence of the Chief Digital Officer as a key CXO role. It reflects where the business priorities are. The report mentions "discretion" in rewards - I hope this discretion is fair and data-backed, not just subjective.
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Vikram M
When I read these figures, I can't help but think of the engineers and middle managers in these companies working 12-hour days for a fraction of this. The compensation structure is mature, but is the distribution fair? That's the real question.
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Nikhil C
The report is reassuring. No knee-jerk reactions, aligning pay with long-term roadmaps. This is how you build sustainable companies, not by chasing quarterly bonuses. Proud to see Indian corporate governance evolving. 🇮🇳

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