Median compensation for non-promoter or professional CEOs in India remained flat ₹10.5 million in FY 2025-26, a modest 5% year-on-year increase and the slowest growth rate since the COVID-19 era, according to a new report by Deloitte India.
The modest increase in their pay comes amid muted stock market performance that has weighed on stock-based payouts — a key component of executive compensation packages.
About one-third of CEO compensation is tied to stock-based incentives such as stock options and performance shares, according to a report released Monday, March 30. Therefore, slower earnings in the broader market limited the overall growth in CEO compensation.
Indian markets ended FY26 on a weak note, with benchmark indices posting their worst annual performance since the Covid-19 pandemic six years ago. A sharp sell-off on the last trading day of the 2025-26 financial year further weighed on sentiment and sealed a weak end for the markets.
Salary growth of other executives; who gets the most money?
The salaries of other C-level executives increased by 4% to 10%.
Among other CXOs, chief financial officers (CFOs) saw the highest compensation growth due to high attrition, a focus on capital efficiency and direct shareholder accountability. In many cases, CFOs also have additional board-level responsibilities.
The median CFO salary for India remained at ₹4.5 million. In addition, the role of chief digital officer is increasingly emerging as a CXO role, a trend that wasn’t necessarily the case before, the report said.
Anandorup Ghose, partner, Deloitte India, commented on the slower pay growth for C-level executives that CXO compensation decisions in India have shown a lot of maturity.
“Given the continued underperformance of Indian equity markets over the past 12-18 months, it is natural that wage growth was lower last year. Market volatility and downside risks have increased recently due to persistent geopolitical risks,” he said.
He added: “We do not expect any sharp reactions from boards and remuneration committees and they are likely to change depending on how domestic and external events unfold.”
Executive performance, incentives and management
The survey found that CXO performance assessment is still robust in India.
“While CXO performance is judged on both financial and non-financial strategic metrics, and the evaluation is data-driven, we see discretion being used in determining CXO reward outcomes. This helps organizations align long-term business plans with compensation strategies while maintaining a focus on accountability,” the survey said.
Multi-year equity grants are increasingly used for CXOs, while one-time retention awards are selectively extended to key talent to ensure high ROI.
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The study revealed that larger companies, especially those comprising the Nifty50 index, opt for more complex multi-year performance sharing plans. In contrast, relatively smaller companies still prefer proven stock options or ESOP plans.
“Some of the world’s top-performing teams are rewarded for results but focus on process. Leading organizations in India are doing the same. The ongoing conflict has reminded us of the inherent volatility of share-based payments. We expect more companies to reward their CXOs based on internal performance metrics rather than just stock price increases. With robust executive job creation contracts and impairment and impairment liability mechanisms, they are board of directors.”
