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