#25 For 2025: What does the top-level swell in pay mean for India's rise?

As a C-level executive search firm, we can confirm firsthand that it's been a good few years for CEO compensation in India. Various end-of-year statistics highlight the narrowing gap with global compensation but as they say, statistics reveal much, but also conceal the vitals.

CEO compensation is a function of the position, performance, person and pay philosophy. Many top earners remain promoter-CEOs. This is well-regulated by shareholders and a welcome trend, as it creates an opportunity to recruit and pay high-performing professionals.

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From an overall market perspective, economic growth and strategic globalisation-and high local inflation-drive hikes. Philosophically though, growth in fixed pay has been modest, often in line with inflation. However, the real uptick in numbers may be skewed by the number of value-release events, and hence one-off lumpy equity- related payouts for promoters, professionals and investors.

In terms of performance, the ask of leaders is escalating. For all the hype, there is still a shortage of high-quality leaders in India and hence professionals with relevant industry skills, entrepreneurial mindset, and a tech-first approach. Those who understand the Indian landscape command a premium.

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Sector and scale remain important. Top-earning professionals have predominantly been from the technology sector, where India is home to a handful of mature, globally scaled businesses. However, growth and pay have ticked up across other sectors as well. Global capability centres are also coming of age, with high-paying key global roles now based in India. New sector build outs also create demand-supply mismatches, leading to surges in compensation. Think digital, EVs, batteries, renewables, semiconductors.

Since market scale and median US CEO pay is still 10x-plus of India pay, there is some distance to go, but the economic trends and evolving leadership demands are steadily redefining what premium compensation in India truly represents.

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The writer is Managing Partner, Accord India