Average salary of senior executives in India rise by nearly 9.1% in 2023: Aon
The average CEO compensation is ₹8.4 crores, increasing 21 per cent in the last four years
Global professional services firm Aon said that average salary of senior executives and CEOs in India has increased by nearly 9.1 per cent in 2023.
The average CEO compensation is ₹8.4 crores, increasing 21 per cent in the last four years, showed the study.
In its report Aon said that the sum of variable pay and long-term incentives (LTI) for total compensation, the LTI has increased to 40 percent of the total compensation, up from 26 percent in 2015-16.
The study that analysed data from a across 519 companies from more than 25 industries. It said that the increasing salary trend in senior executives indicated that value that they bring to the organization.
“Senior executives’ salary increases continue to focus on pay at risk, indicating the emphasis on rewarding executives for the value they bring to the organization. In a rapidly evolving, volatile business environment, organizations seek to adopt executive pay programs that drive the right behaviours, are cost effective and contribute to longterm business results. Organizations can therefore benefit from a data-driven approach to make better decisions regarding complex executive compensation issues while navigating business volatility," said Nitin Sethi, chief executive officer, Human Capital Solutions, India and South Asia at Aon.
The study found that amongst the Bombay Stock Exchange’s (BSE) top 30 companies, long-term incentives (LTI) is provided at 176 per cent of fixed pay for CEOs and at 103 percent for other c-level executives, including the chief operating officer, chief financial officer, sales leader and chief human resources officer.
The average LTI amount for CEOs for the same set of organizations ₹10 crore.
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First Published:30 Jan 2023, 03:15 PM IST
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