Manufacturing firms' CEOs see over 10% salary hike

CEOs at manufacturing and service companies saw their compensations bulge over 10 per cent this year, compared with the slowdown days of 2009 but performance bonuses fell.

The average CEO pay packets in the manufacturing sector jumped 14 per cent, while that of chief executives in the services industry increased 12 per cent, according to staffing services firm Ma Foi Randstad.

CEOs of manufacturing and services firms have seen "double-digit growth" in their salaries, more than 10 per cent, Ma Foi Randstad's President (Consulting & Outsourcing) Rahul Goyal told PTI.

The average increase in CEO salaries in the manufacturing sector is around 14 per cent, compared to the last year.

"In the manufacturing sector, the highest increase (18 per cent) is among the power equipment manufacturers followed closely by the pharmaceutical sector... Power (sector) is now on top due to strong growth expected in future," Goyal said.

The services sector saw an average CEO compensation increase of 12 per cent, with entities in the BFSI (Banking Financial Services and Insurance) vertical, garnering the highest of 14 per cent rise.

"The global financial meltdown affected the services sector more than the manufacturing sector. In line with this trend, the salary increase is higher amongst manufacturing organisations," Goyal noted.

Moreover, manufacturing industries are seeing high demand for talent especially due to steady increase in greenfield projects (new ventures) and brown-field expansion (expanding existing facilities).

According to Ma Foi Randstad, performance bonus for CEOs in the services sector was, however, adversely affected component of compensation.

Goyal, however, did not share the details of the bonus numbers.

"The impact was less amongst manufacturing sector organisations as the 'performance bonus' as a component of overall compensation is less prevalent than the services sector organisations...," Goyal noted.