India Inc Median CEO Pay Hits Rs 10.5 Crore In FY26; CFO Salaries Rise Fastest: Deloitte

The median compensation for non-promoter, professional CEOs in India stood at Rs 10.5 crore in FY2025–26, reflecting a modest 5 percent year-on-year increase—the slowest growth since the Covid period—according to a report by Deloitte India.

The muted rise comes amid weak equity market performance, which has weighed on stock-linked payouts—a key component of executive compensation. The report, released on March 30, noted that nearly one-third of CEO pay is tied to equity incentives such as stock options and performance shares, making overall compensation sensitive to market movements.

Indian equity markets ended FY26 on a weak footing, recording their worst annual performance since the pandemic. A sharp sell-off on the final trading day of the financial

year further dampened sentiment and capped executive pay growth.

CFOs Lead Pay Growth Among CXOs

Compensation for other C-suite executives rose between 4 percent and 10 percent. Among them, chief financial officers (CFOs) saw the sharpest increase, driven by high attrition, greater focus on capital efficiency, and direct accountability to shareholders. In several cases, CFOs are also taking on expanded board-level responsibilities.

Median CFO compensation stood at Rs 4.5 crore. The report also highlighted the growing importance of the chief digital officer role, which is increasingly being recognised as a core CXO position.

Market Conditions Shape Pay Decisions

Commenting on the trend, Anandorup Ghose said compensation decisions in India are becoming more measured and mature.

“Given the underperformance of Indian equity markets over the past 12–18 months, lower pay increases were expected. Volatility and downside risks have intensified further amid ongoing geopolitical uncertainties,” he said.

He added that boards and remuneration committees are unlikely to react hastily, and will instead recalibrate compensation strategies based on evolving domestic and global conditions.

Shift Towards Performance-Linked Rewards

The survey found that CXO performance evaluation in India remains robust and increasingly data-driven, incorporating both financial and strategic metrics. At the same time, companies are exercising discretion in determining payouts to better align compensation with long-term business goals.

Multi-year stock grants are becoming more common for senior executives, while one-time retention bonuses are selectively used to retain critical talent.

Larger firms, particularly those in the Nifty 50, are increasingly adopting complex multi-year performance share plans. In contrast, smaller companies continue to rely on traditional ESOP structures.

Ghose noted that global best practices are also shaping Indian compensation models. “There is a growing focus on rewarding outcomes while staying aligned with process and long-term strategy. Given the volatility in share-based payouts, more companies are likely to link rewards to internal performance metrics rather than just stock price movements,” he said.

With stronger executive contracts and accountability frameworks in place, boards and HR leaders are increasingly focusing on sustainable value creation rather than short-term gains.