Indian CEO Pay Nears Global CEO Earnings

By siliconindia   |   Monday, 13 February 2012, 16:15 IST   |    3 Comments
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Ghose adds by saying, "The availability of leadership talent in India, especially that high up the ladder is still low, compared with evolved markets." He further says, "In India, CEO compensation has been growing steadily by 15 percent to 18 percent in the past few years."

Sanjiv Sachar, partner at Egon Zehnder, says, "CEOs in India today not only have to manage Indian operations, but are also responsible for expanding the global footprint of their companies." He further says, "More importantly, organizations today have no issues with professionals making money as long as they perform and give the desired results. Ronesh Puri, M.D. at Executive Access, stresses upon how increased talent of Indian CEOs is being compensated through monetary means. 

Sachar says that the mark of Indian exec pay had increased from $250,000 in 2002-03 to $500,000-$700,000 by 2005-06. He said that the gap between fixed incomes of CEOs and CXOs was tapering. He further says, "Over the years, more money was added into CEOs' compensation by way of variable income." Income of both, CEOs and CXOs, has gone up in the last few years.

The study also reveals a bend towards providing employees with additional modes of compensation like - club memberships, medical insurance, life insurance and housing. It reveals, "Loans was the only area where there was a clear divergence based on the nature of company. While financial institutions were most prominent in advancing loans to their executives, only about 40 percent of all other companies provided this benefit."