NEW DELHI– Median compensation for professional chief executives in India rose 5 percent year over year to about Rs 10.5 crore in fiscal year 2026, marking the slowest pace of growth since the COVID-19 pandemic, according to a new report by Deloitte India.
The muted increase was largely attributed to weaker equity market performance, which reduced the value of stock-linked pay — a key component of executive compensation packages.
Deloitte India said nearly one-third of CEO compensation is tied to stock awards, making total pay more sensitive to market fluctuations. As equity returns remained subdued over the past 12 to 18 months, overall compensation growth slowed.
Pay increases for other C-suite executives ranged between 4 percent and 10 percent. Chief financial officers saw the highest gains, driven by high attrition rates, greater focus on capital efficiency, and expanded responsibilities at the board level with direct accountability to shareholders. Median compensation for CFOs stood at around Rs 4.5 crore, the report said.
The firm also noted the growing importance of the chief digital officer role, which is increasingly being elevated to the C-suite as companies prioritize digital transformation.
“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 at 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 organizations align long-term business roadmaps to compensation strategies while continuing to focus on accountability,” the report added.
The report also highlighted a shift in compensation structures, with companies moving away from a one-size-fits-all approach to stock awards. Instead, remuneration committees and chief human resources officers are increasingly adopting multiple long-term incentive plans tailored to different employee groups, signaling a broader evolution in pay strategies across corporate India. (Source: IANS)
