India Inc CEOs earn ₹10.5 cr annually but pay growth slowest since Covid 19

With Indian equity markets underperforming over the past 12-18 months and geopolitical uncertainties rising, companies have taken a cautious approach to compensation.

Equity Weakness Caps CEO Pay Hikes in FY26

Sunainaa Chadha NEW DELHI

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Median compensation for professional CEOs in India stood at ₹10.5 crore in FY2025–26, marking a modest 5% year-on-year increase and the slowest growth since the COVID-19 period, according to a new report by Deloitte India.

The muted rise in pay comes amid subdued equity market performance, which impacted stock-linked compensation — a key component of executive pay.

The Deloitte India Executive Performance and Rewards Survey 2026 highlights that nearly one-third of CEO compensation is linked to stock awards. The slower appreciation in equity markets over the past year reduced the value of these payouts, leading to a softer increase in overall compensation.

CXO Pay Trends: CFOs Lead the Pack

The pay for other CXOs saw an increase ranging from 4 percent to 10 percent.

Among the other CXOs, CFOs witnessed the highest compensation increase given the high attrition, focus on capital efficiency and direct shareholder accountability. In many cases, CFOs also hold additional board-level responsibilities.

Median India CFO compensation now stands at Rs 4.5 crore. Additionally, the chief digital officer role is increasingly emerging as a CXO role, which was not necessarily the case earlier.

“CXO compensation decisions in India have shown great maturity. Given the ongoing underperformance of Indian equity markets over the past 12–18 months, it is natural that pay increases were lower last year. 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.

Performance, incentives and governance

The survey finds that CXO performance assessment remains robust in 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," noted the survey.

Remuneration strategies in India, particularly with respect to stock awards, are also undergoing a fast transition. Instead of a one-plan-fits-all approach, remuneration committees and CHROs are increasingly deploying multiple long-term incentive plans for different employee cohorts.

Multi-year stock grants are being used more for CXOs, while one-time retention awards are being extended to key talent selectively to drive a high return on investment.

The study revealed that larger companies, particularly those comprising the Nifty50 Index, are opting for more complex multi-year performance share plans. In contrast, relatively smaller companies still prefer the tried-and-tested stock options or ESOP plans.

"Some of the most high-performing teams globally are rewarded for outcomes but focus on the process. Leading organisations in India are also doing the same. The ongoing conflict has reminded us of the inherent volatility in share-based payments. We expect more companies to reward their CXOs on internal performance metrics than simply a share price increase. With robust executive employment contracts and downside accountability mechanisms, Boards and CHROs are driving sustainable value creation,” said, Anandorup Ghose, Partner, Deloitte India.

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First Published: Mar 30 2026 | 8:55 AM IST