BANGALORE,Bangalore 24,2012: The average salary of top CEOs in India has risen to Rs 2 crore, up by close to 30% in the last one year, says an executives compensation report by global consulting firm Hay Group that has just been released. The study covered 87 top Indian and MNC CEOs (no family CEOs were eligible) operating across industry domains. It found that some 50% of them are now in the Rs 2 crore per annum category and 12% in the Rs 7 crore category. "There is a substantial jump in what professional CEOs carry home today compared to a year ago. Most of the CEOs in the Rs 2 crore category were in the Rs 1.4 crore or Rs 1.5 crore pay scale a year ago. Conglomerate CEOs who used to get Rs 5.25 crore on average a year ago now get about Rs 7 crore," said Sridhar Ganesan, rewards practice leader at Hay Group. A growing trend of cross-sector employability of CEOs, coupled with scarcity of holistic CEOs (those with experience across functions), has created a scramble for CEO talent in the job market. "Enterprises are hiring function/sector agnostic CEOs, those who are general operational specialists. They are willing to pay a premium for leaders with broad-based experience and exposure," said Ganesan.The Indian CEO market has always seen a large pool of "operationally excellent" CEOs, but a constant scarcity of "managing-business" CEOs has driven compensation high. Compensation is expected to further spiral upwards owing to the increasing cross-sector employability of CEOs-the new breed of "Lateral CEOs", said the study.Cross-sector movements are becoming the order of the day. The Hay Group study notes that a global cement major recently recruited an Indian investment banker as CEO of its India operations and that the CEO of an Indian manufacturing company has joined an IT company to lead its manufacturing vertical.The average CEO's salary is 2.6 times that of the rest of the executive population, in terms of total cost to company (CTC), excluding long-term incentives. However, there is very little total compensation differential between top executives across core and enabler functional roles.The study looked at sectors like mining, oil and gas, chemicals, automotives, construction, consumer durables, FMCG, retail, telecom, transportation, and power/utilities. Technology companies were not part of the study.
Average salary of Indian CEOs up 30% to Rs 2 crore: Report
BANGALORE,Bangalore 24,2012: The average salary of top CEOs in India has risen to Rs 2 crore, up by close to 30% in the last one year, says an executives compensation report by global consulting firm Hay Group that has just been released. The study covered 87 top Indian and MNC CEOs (no family CEOs were eligible) operating across industry domains. It found that some 50% of them are now in the Rs 2 crore per annum category and 12% in the Rs 7 crore category. "There is a substantial jump in what professional CEOs carry home today compared to a year ago. Most of the CEOs in the Rs 2 crore category were in the Rs 1.4 crore or Rs 1.5 crore pay scale a year ago. Conglomerate CEOs who used to get Rs 5.25 crore on average a year ago now get about Rs 7 crore," said Sridhar Ganesan, rewards practice leader at Hay Group. A growing trend of cross-sector employability of CEOs, coupled with scarcity of holistic CEOs (those with experience across functions), has created a scramble for CEO talent in the job market. "Enterprises are hiring function/sector agnostic CEOs, those who are general operational specialists. They are willing to pay a premium for leaders with broad-based experience and exposure," said Ganesan.The Indian CEO market has always seen a large pool of "operationally excellent" CEOs, but a constant scarcity of "managing-business" CEOs has driven compensation high. Compensation is expected to further spiral upwards owing to the increasing cross-sector employability of CEOs-the new breed of "Lateral CEOs", said the study.Cross-sector movements are becoming the order of the day. The Hay Group study notes that a global cement major recently recruited an Indian investment banker as CEO of its India operations and that the CEO of an Indian manufacturing company has joined an IT company to lead its manufacturing vertical.The average CEO's salary is 2.6 times that of the rest of the executive population, in terms of total cost to company (CTC), excluding long-term incentives. However, there is very little total compensation differential between top executives across core and enabler functional roles.The study looked at sectors like mining, oil and gas, chemicals, automotives, construction, consumer durables, FMCG, retail, telecom, transportation, and power/utilities. Technology companies were not part of the study.