Global professional services firm Aon said the average salary for top executives and chief executives in India rose nearly 9.1 percent in 2023.
The average compensation of a CEO is $8.4 crore, an increase of 21 percent in the last four years, the study showed.
In its report, Aon said that the sum of variable salary and long-term incentives (LTI) for total compensation, LTI increased to 40 percent of total compensation, up from 26 percent in 2015-16.
The study that analyzed data from 519 companies from more than 25 industries. He said that the growing salary trend for senior executives indicates that value they bring to the organization.
“Senior executive pay increases continue to focus on risk pay, indicating an emphasis on rewarding executives for the value they bring to the organization. In a rapidly evolving and volatile business environment, organizations are looking to adopt executive pay programs that drive the right behaviors, are profitable, and contribute to long-term business results. Therefore, organizations can benefit from a data-driven approach to make better decisions regarding complex executive compensation issues while navigating business volatility,” said Nitin Sethi, CEO, Human Capital Solutions, India & South India. Asia in Aon.
The study found that among the top 30 companies on the Bombay Stock Exchange (BSE), long-term incentives (LTI) are provided at 176 per cent of fixed pay for CEOs and 103 per cent for other executives of C level, including director of operations. , financial director, sales leader and human resources director.
The average amount of LTI for CEOs for the same set of organizations $10 crores.