Indian Chief Executives See Slowest Pay Growth Since Pandemic
Median Executive Compensation Rises 5% in FY26
New Delhi, March 30 – The median compensation for professional chief executives in India rose 5 per cent year-on-year to approximately ₹10.5 crore in fiscal year 2026, marking the slowest pace of growth since the COVID-19 pandemic period, according to a new report from Deloitte India.Stock Market Performance Impacts Executive Pay
The muted rise in executive compensation was primarily due to subdued performance in the equity market, which reduced the value of stock-linked compensation—a significant component of executive pay. Deloitte India found that nearly one-third of CEO pay is linked to stock awards, leading to a notable dip in total compensation due to poor returns in equity markets over the past 12 to 18 months.CFOs See Largest Pay Increases
Pay increases for other Chief Experience Officers (CXOs) ranged between 4 per cent and 10 per cent. Chief financial officers (CFOs) experienced the largest gains, with the median compensation standing at approximately ₹4.5 crore. This growth was attributed to high attrition rates, a focus on capital efficiency, and expanded board-level responsibilities with direct shareholder accountability.Chief Digital Officer Role Emerges
The report also noted the increasing emergence of the chief digital officer role as a CXO position. Deloitte India highlighted that CXO performance assessment remains robust within the Indian market.Boards Maintain Strategic Approach to Remuneration
“CXO compensation decisions in India have shown great maturity,” said Anandorup Ghose, Partner, Deloitte India. “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.”Furthermore, remuneration committees and CHROs are increasingly moving away from a one-plan-fits-all approach with respect to stock awards, utilizing multiple long-term incentive plans for different employee cohorts. This shift reflects a major change in India Inc.’s remuneration strategies, aligning long-term business roadmaps with compensation strategies while maintaining a focus on accountability.
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