Press Esc to close
Sunday 31 August 2014
News updated at 2:35 AM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
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
Mayawati is garlanded after she was unanimously elected as the National President of BSP for...

Mayawati is garlanded after she was unanimously elected as the National President of BSP for...

Protesters set a police vehicle on fire in Ukhrul on Saturday demanding immediate solution to...

Protesters set a police vehicle on fire in Ukhrul on Saturday demanding immediate solution to...

Traffic chaos in Surat on Saturday...

Traffic chaos in Surat on Saturday...

A 98-metre long under construction bridge collapses over a stream of Bagmati and Lakhani rivers...

A 98-metre long under construction bridge collapses over a stream of Bagmati and Lakhani rivers...

Sukumar, a Bangalore airport customs officer supporter of Hubli Tigers seen during KPL Match...

Sukumar, a Bangalore airport customs officer supporter of Hubli Tigers seen during KPL Match...

Clay Ganpati referees the Brazilian and Argentine undeers (mouse) have been installed by a family...

Clay Ganpati referees the Brazilian and Argentine undeers (mouse) have been installed by a family...

Hindu devotees light incense and offer prayers to a snake on Nag Panchami festival in Jammu...

Hindu devotees light incense and offer prayers to a snake on Nag Panchami festival in Jammu...

A Hindu devotee whisper her wishes into the ear of an idol of elephant-headed Hindu god...

A Hindu devotee whisper her wishes into the ear of an idol of elephant-headed Hindu god...

England's Morgan leaves the field after being dismissed for 10 runs during the ODI against India ...

England's Morgan leaves the field after being dismissed for 10 runs during the ODI against India ...

Union Finance Minister Arun Jaitley at a press conference at National Media Centre in New Delhi ...

Union Finance Minister Arun Jaitley at a press conference at National Media Centre in New Delhi ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523