New Delhi: As the debate over CEO salaries in the country continues, a new study says Indian top managers are paid nearly $30,000 (Rs12,30,000)a year less than their peers in the emerging BRIC countries.
After factors such as tax and cost of living are taken into consideration, corporate India’s top brass can boast of an average disposable income of just $92,750, lagging behind top managers in other fast growing economies like Brazil, Russia and China. The three countries along with India are collectively known as BRIC countries.
While Russia’s managers stand tall with a disposable income of $1,57,348, Chinese managers rank second with $1,26,281 and those from Brazil rank third with a disposable income of $1,23,766 per year, Global management consultancy firm Hay Groups latest World Pay Report said.
All the three BRIC nations except India managed to reserve their place in the top 20 countries listed by the World Pay Report, while India was way behind and managed 36th rank in the list of global pay stakes for 47 countries.
India’s large base of skilled talent has made the management pay somewhat immune to the global market despite the impressive economic development in the country.
“India benefits from a large tier of well educated, English-speaking local talent, making management pay more immune to the international market,” the World Pay Report said.
The top management cadre of corporate India can expect better pay packet in the future. The report said managers’ pay in India is increasing between 15-20% so it is unlikely to stay at the bottom of the pay table for long.
The report compiled the detailed cross-country pay information. This report defined pay as total cash, which is equal to base salary plus any annualised short-term variable incentive.