Why India Inc Is Paying Million-Dollar CEOs More Than Ever

Amid escalating global uncertainties—from geopolitical tensions to trade protectionism—Indian companies are increasingly turning to professional CEOs to steer complex, multi-functional operations. These leaders command premium, performance-driven compensation, reflecting boards' demand for independent expertise and cycle-tested resilience, said an ET report.According to data from global executive search firm Stanton Chase, the number of professional CEOs earning over $1 million ( Rs 8 crore+) in BSE 200 companies surged nearly 71% to 145 in FY25 from 85 five years prior. In contrast, promoter-led CEOs edged up modestly from 60 to 65.“This trend marks India Inc's evolution toward greater institutionalization,” said Amit Agarwal, MD (India & Singapore)

at Stanton Chase. “Boards seek leaders with global exposure and the ability to meet sophisticated stakeholder expectations, even as promoters remain engaged in strategic oversight.”Experts attribute the rise to India's deeper global integration, which has amplified business complexity. “Ten years ago, many operations were domestic-focused. Today, they're multifaceted, with private equity inflows reshaping governance,” noted Anshuman Das, CEO of Longhouse Consulting.The IT/ITeS sector led the pack, posting the sharpest compensation growth over five years, followed by manufacturing (34%). Vibhav Dhawan of Positive Moves emphasized that professional hires stem from evolving needs post-pandemic and amid wars, not promoter disengagement.Top Earners and Pay Structure Evolution

• Former Wipro CEO Thierry Delaporte: Rs 168 crore (highest overall, including severance and vested options in FY25).
• Thierry Delaporte, former Wipro CEO.
• Persistent Systems CEO Sandeep Kalra: Rs 148 crore.
• Sandeep Kalra, CEO of Persistent Systems.
• Among promoter CEOs, Hero MotoCorp CMD Pawan Munjal: Rs 109 crore.

Pay is increasingly tied to outcomes. Fixed components dropped to 31% in FY25 from 35% in FY21, with variable and ESOP-linked rewards dominating. “It's now heavily accountability-focused—linked to profits, cash flows, and resilience,” said Mala Chawla, MD (India) at Stanton Chase.Overall, average CEO pay rose to Rs 10 crore from Rs 9.3 crore, with aggregate compensation across the cohort jumping to Rs 4,700 crore from Rs 2,700 crore. Growth aligns with expanding company scale and profitability, not unchecked inflation.This professionalization wave underscores India Inc's maturation into a more governance-oriented, globally competitive ecosystem—where talent commands top dollar to deliver sustained value.