CEOs See 13% Salary Boost In 2025 Despite Market Volatility, Says Report. Details Here
The growth trajectory of non-promoter chief executives (CEOs) remains strong despite market volatility, according to the latest survey by Deloitte India. Their median compensation reached Rs 10 crore in the fiscal year 2024-25, marking a 13 per cent increase compared to the previous year, as reported by The Economic Times citing Deloitte India’s Executive Performance and Rewards Survey.
The survey reveals that only 40 per cent of a CEO’s total compensation consists of fixed salaries, with the remaining 60 per cent tied to performance-based incentives. Short-term bonuses and long-term incentives constitute 25 per cent and 35 per cent of their annual pay, respectively.
Other Top Executives' Salary Hike
Similarly, other top-level executives—including Chief Operating Officers (COOs), Chief Financial Officers (CFOs), Chief Human Resource Officers (CHROs), Chief Marketing Officers (CMOs), and Chief Strategy Officers (CSOs)—also experienced salary increases ranging from 7 per cent to 11 per cent. For these roles, fixed salaries account for 60 per cent of the total compensation, while the rest is evenly divided between short-term and long-term performance incentives.
COOs and CFOs continue to be among the highest-paid executives after CEOs, with annual earnings nearing Rs 4 crore.
Anandorup Ghose, Partner at Deloitte India, attributed the upward trend in CXO compensation to the high demand and limited supply of top-tier talent. He noted that while the current stock market downturn has not yet impacted executive salaries, its effects could become evident in the next year’s data.
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Executive Compensation Re-evaluation
Companies are increasingly re-evaluating their approach to executive compensation, with many boards adopting a more cautious stance amid ongoing market uncertainty. In particular, roles in legal, risk, and compliance have seen significant salary reductions, reflecting their traditionally lower pay scales compared to other executive positions.
This shift is highlighted in Deloitte’s sixth edition of the Executive Performance and Rewards Survey, conducted in September 2024. The survey gathered insights from over 400 private companies across various industries, offering a comprehensive view of current trends in executive pay.
One notable change is the evolving criteria for assessing performance. Short-term bonuses are now increasingly linked to non-financial objectives, such as customer satisfaction and sustainability, while long-term incentives remain largely tied to financial outcomes. Additionally, more organisations are implementing performance scorecards for CEOs and top executives, aiming to balance profitability with strategic goals.
Bonuses are becoming more performance-driven, with companies paying less to executives who fail to meet their financial or business targets. Stock-based compensation is also on the rise, becoming more intricate with the introduction of performance-based shares and diversified plans.
However, this growth in stock-based pay is accompanied by stricter oversight. Shareholders are now rejecting stock proposals at a rate four times higher than the previous year, largely due to increased scrutiny from proxy advisors.
“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 in the report.
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