CEO pay weathers market volatility, jumps 13% to ₹10 cr in FY25: Deloitte

Top execs like COOs, CFOs, CHROs, CMOs & CSOs saw 7-11 per cent pay hikes this year. COOs and CFOs remain highest paid after CEOs, with annual salaries nearing ₹4 crore

A latest survey by Deloitte India shows that market volatility has not affected the growth of the non-promotor chief executives (CEOs) as their median compensation touched ₹10 crore in FY25. This marked the 13 per cent increase in their salaries from previous year, reported The Economic Times, citing the Deloitte India’s Executive Performance and Rewards Survey. 

 

The survey mentioned that only 40 per cent of the CEO compensation is fixed salaries, while the other 60 per cent is based on their performance. Short term bonuses and long-term incentives account for 25 per cent and 35 per cent of their annual compensation. 

   

Other top-level executives, like COOs, CFOs, CHROs, CMOs, and CSOs, also got salary hikes of 7–11 per cent. For them, 60 per cent of the pay is fixed, and the rest is split equally between short- and long-term incentives.  

 

COOs and CFOs are still the best paid after CEOs, earning close to ₹4 crore a year. 

 

“CXO pay is still rising because this talent is in short supply and high demand,” said Anandorup Ghose, partner at Deloitte India. He said the current stock market dip has not yet affected salaries, but it might reflect in next year’s numbers.  

 

Companies are starting to rethink how they decide executive pay. Many boards are now more cautious due to market uncertainty. In some areas, like legal, risk, and compliance, salaries have dropped sharply, as these roles have always been paid less than others.  

 

This survey, Deloitte’s sixth edition, was done in September 2024. It included responses from over 400 private companies across different industries.  

 

The way performance is judged is also changing. Short-term bonuses now look at non-financial goals like customer satisfaction or sustainability. Long-term bonuses are still mostly tied to financial results.  

 

More companies are now using scorecards to measure performance for CEOs and other top executives — balancing profits with strategic priorities.  

 

Bonuses are becoming harder to earn. Companies are paying less to executives who don’t meet their financial or business targets. Stock-based pay is also growing in popularity, becoming more complex with the use of performance-based shares and multiple plans.  

 

But this increase in stock-based pay comes with tighter checks. Shareholders are rejecting more stock plans than before — four times more than last year. This is due to proxy advisors raising concerns.  

 

“New stock proposals are getting closer scrutiny, which is a good sign. Better governance means better decisions. We’re already seeing improved quality in shareholder proposals,” said Dinkar Pawan, director at Deloitte India.