- The median compensation for professional chief executives in India rose 5 per cent year-on-year
- Pay increases for other CXOs ranged between 4 per cent and 10 per cent
- CHROs are increasingly deploying multiple long-term incentive plans for different employee cohorts
It's not just junior and mid-senior employees, even top executives are not getting the hikes they may have expected. According to a recent report by Deloitte India, the median compensation for professional chief executives in India rose 5 per cent year-on-year to about Rs 10.5 crore in FY26.
While the Rs 10.5 crore figure may appear substantial to most salaried employees, this marks the slowest pace of growth in chief executive salaries since the Covid-19 pandemic. The sluggish rise is an outcome of the stock markets underperforming for over a year. FOLLOW LIVE UPDATES
With stock-linked compensation forming a significant portion of executive pay, the prolonged weakness in equity markets has weighed on overall earnings. The Deloitte India report found that nearly one-third of CEO pay is linked to stock awards. As a result, poor equity market returns over the past 12 to 18 months have meaningfully reduced total compensation outcomes.
Pay increases for other CXOs ranged between 4 per cent and 10 per cent. Chief financial officers saw the largest gains, driven by high attrition, a sharper focus on capital efficiency, and expanded board-level responsibilities with direct shareholder accountability. Median compensation for Indian CFOs stood at around Rs 4.5 crore, the report said.
| Designation | Median Compensation (FY26) | Salary Increase Range | Key Driver Behind Hike |
| Chief Executive Officer | Rs 10.5 crore | 5 per cent | Stock-linked pay hit by weak markets |
| Chief Financial Officer | Rs 4.5 crore | 8-10 per cent | Attrition, capital focus, board accountability |
| Other CXOs | Not disclosed | 4-8 per cent | Performance-linked assessment |
| Chief Digital Officer | Emerging CXO role | Not specified | Digital transformation priority |
The report also noted that the role of chief digital officer is increasingly being recognised as a CXO position. At the same time, CXO performance assessment frameworks in India continue to remain robust and data-driven.
"CXO compensation decisions in India have shown great maturity. Market volatility and downside risks have increased further recently amid ongoing geopolitical risks. We do not expect any knee-jerk reactions from boards and remuneration committees, and they are likely to change course depending on how domestic and external events unfold," said Anandorup Ghose, Partner, Deloitte India.
"While CXO performance is assessed on both financial and non-financial strategic metrics, and the evaluation is data-driven, we see discretion being applied to determine CXO rewards outcomes. This helps organisations align long-term business roadmaps to compensation strategies while continuing to focus on accountability," the report added.
Shift In India Inc's Remuneration
Instead of a one-plan-fits-all approach to stock awards, remuneration committees and CHROs are increasingly deploying multiple long-term incentive plans for different employee cohorts. This marks a notable shift in India Inc's remuneration strategies.
The study reveals that larger companies, particularly those in the Nifty50 index, are opting for more complex multi-year Performance Share Plans. In contrast, relatively smaller companies continue to prefer traditional Stock Options or ESOP plans.
More than 350 organisations participated in the survey, and it did not include any public sector companies.
An earlier report by Ernst & Young, released just before the fresh conflict in Iran on February 28, estimated that corporate India is expected to roll out an average salary increase of 9.1 per cent in 2026, with Global Capability Centres leading pay growth.
'Growing need for greater transparency'
Speaking on the findings of the report, Raghunandan Saraf, Founder and CEO, Saraf Furniture, told NDTV, "The rise in median compensation for CEOs at Rs 10.5 crore in FY26 is a reflection of the dynamic nature and scale at which businesses are operating today. Over the past few years, CEOs have had to navigate businesses through global economic volatilisation, technological disruption, and changing consumer behaviour. The compensation for CEOs is increasingly becoming performance-driven and is now closely linked to value creation, innovation, and execution rather than short-term performance."
He added, "With businesses growing in scale and scope, it is increasingly being evaluated by various stakeholders, including employees and regulatory bodies, whether the compensation for CEOs is commensurate with business performance and employee satisfaction. There is also a growing need for greater transparency in terms of compensation structures and justification."
Adding to Saraf, Anup Garg, Founder & Director, World of Circular Economy (WOCE), said, "As India Inc. increasingly aligns itself to global climate commitments and moves toward a low-carbon growth trajectory, the role of a CEO may need to extend from merely delivering financial performance to also delivering on sustainability and environmental fronts. In fact, a number of Indian companies are increasingly incorporating sustainability metrics into compensation for their executives, where ESG-based incentives are becoming a significant part of executive compensation."
Garg added, "This may also need to be seen from a perspective where companies are increasingly being asked to deliver on sustainability goals, as this bodes well for investors and the long-term performance of companies. However, the widening pay gap between the CEO and employees, ranging from 60-300 times, also begs the question of sustainable and equitable growth in a sustainability-driven economy."
