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05 Apr 2026
Synopsis
Median pay for professional CEOs in India rose 5% year-on-year to ₹10.5 crore in FY26, marking the slowest growth since the pandemic, according to a Deloitte report. The moderation reflects weaker equity market performance and rising geopolitical risks.
The median compensation for non-promoter or professional CEOs rose 5 per cent year-on-year to Rs 10.5 crore in FY26, according to a Deloitte report.
The median CEO compensation of Rs 10.5 crore marks the slowest growth since COVID-19, alongside evolving structures around incentives, stock-linked pay and the rising prominence of roles such as the Chief Digital Officer, it added.
"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 only increased recently due to the 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.
Among CXOs, CFOs witnessed the highest compensation increase given the high attrition, focus on capital efficiency, and direct shareholder accountability.
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"CFO pay also witnessed a sharp increase as the role has become more critical in an increasingly volatile business environment. Companies are relying on their CFOs to steer financial resilience and strategic decision-making. At the same time, this year noted a significant churn in CFO talent (around 15 per cent NIFTY50 companies saw a change in CFO incumbents), underlining the high demand for experienced, Board-level talent," Ghose noted.
The report further noted that 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 cohorts of employees.
"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," Ghose said.
The study reveals that larger companies, particularly those comprising the Nifty50 Index, are opting for more complex multi-year Performance Share Plans, whereas relatively smaller companies still prefer the tried-and-tested Stock Options or ESOP plans.
"Governance in CXO pay is improving every year with tightly negotiated executive contracts and downside protection clauses. Some of these are also driven by regulation in the financial services industry. We believe that pay decisions are becoming more transparent, positioned as a win-win proposition and healthily debated," Ghose said.
The seventh edition of the Deloitte India Executive Performance and Rewards Survey was launched in September 2025 as an India-specific B2B survey. More than 350 organisations participated in the survey, and it did not include any public sector companies.
