Press Esc to close
Friday 06 May 2016
News updated at 8:10 PM IST
Weather
Max: 35.5°C
Min : 24.9°C
In Bengaluru
Sunny day

Amid slowdown, Indian Inc to see 'modest' 9.4% pay hike

New Delhi, Dec 4, 2012 (PTI)
AFP photo

Top Indian executives are expected to see their pay packets rise by a modest 9.4 per cent in the current fiscal, much less than previous years, as companies battle economic turbulence, says global consultancy Hay Group.

The projected average increase in top executive compensation was in double-digits, at around 11 per cent, in the previous year. "The compensation of CEOs and their (companies) is said (likely) to increase by a modest 9 per cent and 9.4 per cent, respectively, in the current financial year," Hay Group India Rewards Practice Leader Sridhar Ganesan told PTI.

In the next fiscal (2013-14), the compensation of Indian CEO's and top executives is projected to be around 8.9 per cent and 9 per cent, respectively, he said. The economic turbulence is having an effect on executive compensation, Ganesan said, adding "we have to live in a world of single digits (compensation hikes)".

The 'Top Executive Compensation Report' released today covers 158 organisations operating in India and the compensation trends are for Indian and non-promoter CEOs.
Incentives -- both short-term and long-term -- make up for 30-44 per cent of the overall executive compensation mix.

Companies are placing much higher value on the role of CEO compared to the top management team, when it comes to achieving overall business results, it said. "CEOs are paid three times more than all other senior executives. This multiplier goes up to more than four in industries such as Basic Resources and Retail, where it falls below the average in industries such as Transport and Logistics, and Construction and Materials," the report added.

According to Hay Group, there is a trend of increase in external recruitment of CEO's in evolving sectors such as retail and basic resources. "Impatience for business results has led to recruitment of ready-made CEOs and is one of the reasons for variance in the compensation multiplier across sectors," Ganesan said.

"Market, strategy, culture and ambition are the four real drivers of modern days executive compensation," he added. On whether the compensation could go up in the near term, Ganesan said everything would depend on the performance of country's economy. "It is a wait and watch situation," he noted.


Go to Top

Photo Gallery
Women voters wait in a queue to cast their votes at a polling station during the final phase of...

Women voters wait in a queue to cast their votes at a polling station during the final phase of...

Royal Challengers Bangalore players Chris Gayle, Travis Head and Stuart Binny are seen with a fan...

Royal Challengers Bangalore players Chris Gayle, Travis Head and Stuart Binny are seen with a fan...

Boys jump into a step well, built inside the shrine of Sufi Saint Nizamuddin Auliya, to cool off...

Boys jump into a step well, built inside the shrine of Sufi Saint Nizamuddin Auliya, to cool off...

A woman collects drinking water after climbing down a dried up well at Bhakrecha Pada in Thane...

A woman collects drinking water after climbing down a dried up well at Bhakrecha Pada in Thane...

A man offers water to a Peacock at a Zoo in Surat on Thursday...

A man offers water to a Peacock at a Zoo in Surat on Thursday...

Parineeti Chopra and Kunal Kapoor during a promotional event in New Delhi on Thursday...

Parineeti Chopra and Kunal Kapoor during a promotional event in New Delhi on Thursday...

Russian Air Force Su-25 jets fly over Moscow's Kremlin during a general rehearsal for the Victory...

Russian Air Force Su-25 jets fly over Moscow's Kremlin during a general rehearsal for the Victory...

Kashmiri Muslim women react upon seeing a relic believed to be hair from the beard of Prophet...

Kashmiri Muslim women react upon seeing a relic believed to be hair from the beard of Prophet...

Holocaust survivor Robert Tomashof and his daughter Rutti Tomashof light a torch during the...

Holocaust survivor Robert Tomashof and his daughter Rutti Tomashof light a torch during the...

A man prepares food inside a community kitchen at a Hindu temple on the banks of the river Ganga...

A man prepares food inside a community kitchen at a Hindu temple on the banks of the river Ganga...