After CEO Pay Reduction in Covid Year, India CEOs See Rise in Variable Pay for 2021
December 17, 2020
In two of recent newsletters, we had shared a report detailing that many Indian CEO’s had proactively taken compensation cuts and exhibiting empathy with the prevailing situation as result of Lockdowns announced by the government due to the global pandemic. Now it seems, most CEOs at Indian companies are likely to see a hike in the variable component of compensation in the current financial year.
This year, Indian companies are expected to be more aggressive in increasing variable component of CEO compensation. At senior leadership levels the proportion of variable pay is high, at times 40-50% of the compensation. "People have realized that money is not everything. Most CEO are taking this with their chin up and not cribbing too much about salary cuts. They are being realistic and mature, willing to accept tweaking of their perks, as they would like their example to be replicated by their subordinates", said Roneesh Puri MD of Executive Search Firm, Executive Access.
In related news, according to the ‘million-dollar CEO club’s Professional CEOs club study, by EMA Partners, commissioned by the Times of India, the average annual salaries of CEOs rose by 6.5% to ?130,000,000 (Approx. $1.77M USD). The study is based on a sample study of BSE 200 companies and does not include stock options.