CEO Pay in India Rises 5% to ₹10.5 Crore in FY26: Deloitte Report
New Delhi, March 27 – Median compensation for non-promoter or professional CEOs in India rose 5% year-on-year to ₹10.5 crore in FY26, marking the slowest growth since the COVID-19 pandemic, according to a Deloitte report.Slowest Growth in CEO Compensation Since Pandemic
The report highlights that subdued growth reflects market volatility, equity market underperformance, and evolving pay structures, including increased use of incentives and stock-linked compensation.“Compensation decisions for senior executives in India have shown maturity. Given the underperformance of equity markets over the past 12–18 months, lower pay increases were expected,” said Anandorup Ghose, Partner at Deloitte India.
He added that boards and remuneration committees are likely to remain cautious and adjust strategies based on evolving domestic and global conditions.
CFOs See Highest Pay Hikes Amid Rising Demand
Among senior executives, Chief Financial Officers (CFOs) recorded the highest compensation growth, driven by:- Increased focus on capital efficiency
- Greater shareholder accountability
- Rising demand for financial leadership during volatility
Shift in Executive Pay Structures
The study noted a significant shift in remuneration strategies, particularly in stock-based compensation. Companies are increasingly adopting tailored long-term incentive plans instead of a one-size-fits-all approach.“Companies are moving toward rewarding CXOs based on internal performance metrics rather than just share price movements, especially given market volatility,” said Dinkar Pawan, Director at Deloitte India.
Rise of Performance-Based and Multi-Year Incentives
- Large companies, especially those in the Nifty50 Index, are adopting multi-year Performance Share Plans
- Smaller firms continue to rely on ESOPs and stock options
- Greater emphasis on downside accountability and robust executive contracts
Improving Governance and Transparency
The report highlights improving governance in executive compensation, with transparent pay structures, stricter contracts, and performance-linked incentives becoming standard practice. Regulatory influence, especially in the financial sector, is also shaping compensation frameworks.The findings are based on the sixth edition of Deloitte India’s Executive Performance and Rewards Survey, launched in September 2025, which covered over 350 organisations across sectors.
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