Top executives in India are expected to receive an average 9.1% hike to their salaries in 2023, said AON India, which made the observation in the twelfth and latest edition of its annual Executive Rewards Survey.
The projection is, however, lower than that for the previous year, when AON India projected a 9.7% hike to the salaries for senior executives. For 2017 to 2021, on the other hand, its projections were: 8.6% (2017), 8.5% (2018), 8.1% (2019), 5.1% (2020, Covid-19 year), and 7.9% (2021).
The multinational financial services firm made these findings as well:
(1.) On average, a Chief Executive Officer (CEO) is receiving a compensation of ₹8.4 crore, an increase of 21% across the last four years.
(2.) Among companies on the Bombay Stock Exchange (BSE) 100, Chief Financial Officer (CFO) is the highest-paid role, followed by Chief Technical Officer (CTO).
(3.) Among these, the average total cost to company for a CFO is ₹3.99 crore, more than double the figure for the CTO ( ₹1.97 crore).
(4.) The Chief Marketing Officer (CMO) is next, with a total cost to company of ₹1.28 crore. At ₹1.21 crore and ₹69 lakh respectively, the Chief Human Resource Officer (CHRO) and Chief Business Development Officer (CBDO) are the two lowest-paying roles among senior executives.
(5.) Long-term incentives (LTI) are provided at 30 of these companies, and given at 176% of the fixed pay of CEOs, and 103% for other c-level executives (COO, CFO, sales leader, and CHRO).
(6.) The average LTI amount for CEOs across these organisations is ₹10 crore.
(7.) For Board and senior managerial positions, one out of three organisations is focusing on improving the diversity levels.
AON India 12th Annual Executive Rewards Survey
For the exercise, AON India analysed data across 519 firms, which were from more than twenty-five industries. The survey is the largest and most comprehensive of its kind in the country.