CEO pay in India hits Rs 10 Crore Median, 60% of compensation now at-risk: Deloitte Survey
Other C-suite leaders, including COOs, CFOs, CHROs, CMOs, and CSOs, also witnessed a pay hike of 7% to 11% over the past year. Among them, COOs and CFOs remain the highest paid after the CEO, with average annual compensation nearing Rs 4 crore.
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The median compensation for non-promoter, professional CEOs in India has surged to Rs 10 crore, marking a 13% year-on-year increase, according to the Deloitte India Executive Performance and Rewards Survey 2025. The study highlights a significant shift toward performance-linked executive pay, with only 40% of total CEO compensation being fixed and the remaining 60% designated as at-risk.
As per the report, short-term incentives such as annual bonuses now account for 25% of a CEO’s total compensation, while long-term incentives make up 35%. The trend underlines the growing emphasis on performance-driven pay structures across Indian corporates.
Other C-suite leaders, including COOs, CFOs, CHROs, CMOs, and CSOs, also witnessed a pay hike of 7% to 11% over the past year. Among them, COOs and CFOs remain the highest paid after the CEO, with average annual compensation nearing Rs 4 crore. On average, 60% of CXO pay is fixed, with the rest evenly split between short-term and long-term incentives.
Anandorup Ghose, Partner, Deloitte India, said, “CXO compensation continues to rise in India with this talent pool remaining restricted and consequently in high demand. We are yet to observe any negative impact of the ongoing correction in the equity markets on CXO compensation. That may come through in next year’s numbers given the high linkage of CXO compensation with equity prices. NRCs are already taking cognizance of the rising market volatility and may alter the approach for compensation reviews going forward. Apart from the CEO, we observe significant compensation corrections in the legal, risk and compliance functions where absolute compensation has historically lagged other functions.”
Shifting Performance Metrics and Governance Focus
The report also indicates a changing landscape in performance evaluation. Companies are increasingly using holistic scorecards that include strategic and operational metrics, rather than focusing solely on financial outcomes. Short-term incentives are now tied to broader performance goals, while long-term incentives still tend to focus primarily on financial results.
Notably, bonus payouts to CXOs have declined for those failing to meet financial or strategic targets, indicating a more disciplined pay-for-performance culture.
Dinkar Pawan, Director, Deloitte India, said, “Share-based pay is becoming more intricate with the rising use of performance shares and multiple plans. New proposals are being put under the microscope to ensure that the interest of all stakeholders is protected. This is a welcome development as enhanced governance leads to better decisions. We are already seeing clear improvements in the quality of proposals going to the shareholders.”
As share-based long-term incentive plans gain traction, companies are seeing both a rise in stock-linked pay and the costs associated with these programs. However, increased shareholder scrutiny and activism are influencing compensation strategies. Proxy-advisory firms are challenging management proposals more aggressively, resulting in a four-fold increase in shareholder rejections of compensation plans over the past year.
With CEO and CXO tenures getting shorter and shareholder expectations on the rise, the report notes a growing upward pressure on executive pay. Contract negotiations are becoming more intense, as companies look to balance competitive compensation with stronger performance and governance frameworks.
