Performance pay helped top executives get 10-22% hike in 2013

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Faced with one of the roughest years for global economy, top corporate executives in India appear to have weathered the storm in 2013 as performance- linked pay helped them get salary hikes of 10-22%.

According to experts, sluggish economic trends did not have much impact on executive remuneration packages and 35-40% of corporate leaders also managed to secure their bonus payments linked to individual and company performances.

This assumes significance in the backdrop of top executives being affronted with tremendous pressure to maintain profit margins, control costs, retain talent and manage business sentiments.

The HR consultants say the performance of company executives in India has in fact turned out to be above average and better than those in developed countries.

HR consultancy Unison International's Managing Director Udit Mittal said "the performance of many executives has been better this year compared to last year and despite the global slowdown, overall performance has been above average".

"India has been a self-sustainable economy and in other countries due to global market sentiment, performance has been comparatively bad," he said.

Echoing the view, HR services firm Randstad India's CEO Moorthy K Uppaluri said, "Corporate India CEOs, were lucky compared to their Western counterparts as India was still a growth market, though the rate of growth was modest".

"On the other hand, senior executives in developed countries, particularly Europe were faced with a stagnant growth prospects, financially constrained governments and diminishing returns," he added.

In terms of remuneration, top executives pay is estimated to have increased by 8-10% on an average in 2013, while senior executives got a hike of 20-22%.

As per executive search firm MANCER Consulting, there was a rise of 15-20% in compensation levels for executives in 2013.

"There is positive increment expected in financial year 2014-15 as well, as senior executive salaries is inching towards their foreign counterparts slowly," MANCER Consulting CEO Satya D Sinha said.

As per Randstad, Indian top executives got a pay hike of 5-10% in 2013, while 35-40% of senior leaders were given bonuses based on their performance.

"Most companies rewarded senior executives who could take a lead in transforming their business and deliver expected results," Uppaluri noted.

Executive search firm Spectrum Talent Management Director Vidur Gupta said, "Companies have rewarded the ones who did well and at the same time most average performers had to do with very ordinary hikes".