A recent Deloitte India report highlights a slowdown in CEO salary growth, reflecting broader market challenges and evolving compensation strategies in India’s corporate sector.
According to a recent analysis by Deloitte India, the median salary for non-promoter or professional CEOs in India was ₹10.5 crore in FY2025–2026. This represents a moderate 5% year-over-year increase and the weakest growth rate since the COVID-19 period.
CEO Salary Growth Slows in India
The slight increase in their compensation coincides with the weak performance of the equity market, which has affected stock-linked bonuses, a crucial part of executive compensation packages.
💼 CEO Salary Highlights India
- Median Salary: ₹10.5 crore
- Growth: 5% YoY
- Trend: Slowest since COVID period
- Reason: Weak stock market performance
- Variable Pay: ~1/3 equity-based
- Impact: Reduced stock-linked bonuses
Impact of Equity Market Performance
The research, which was released on Monday, March 30, states that equity incentives like stock options and performance shares account for almost one-third of CEO salary. Therefore, the overall increase in chief executive salary was constrained by slower improvements in the general market.
With benchmark indices recording their lowest annual performance since the Covid-19 pandemic six years ago, the Indian markets concluded FY26 on a poor note. On the final trading day of the fiscal year 2025–2026, a steep selloff further damaged the mood and sealed the markets’ poor conclusion.
CXO Compensation Trends
Other C-level executives saw pay increases ranging from 4% to 10%. Chief financial officers (CFOs) saw the largest pay increase among the other CXOs due to their high attrition, emphasis on capital efficiency, and direct accountability to shareholders. CFOs frequently have extra duties at the board level.
The median payment for CFOs in India was ₹4.5 crore. According to the survey, the chief digital officer position is also becoming more and more of a CXO function, which was not always the case in the past.
📊 CXO Pay Trends
- CXO Growth: 4%–10%
- Top Gainers: CFOs
- CFO Median Pay: ₹4.5 crore
- Reason: High demand & responsibilities
- New Role: Chief Digital Officer rising
- Focus: Capital efficiency & governance
Expert Insights on Compensation Strategy
Anandorup Ghose, Partner, Deloitte India, stated that CXO compensation decisions in India have demonstrated remarkable maturity in response to the slower growth in C-level executives’ salary.
It makes sense that last year’s salary increases were smaller given the continuous underperformance of Indian equities markets over the previous 12 to 18 months. Due to persistent geopolitical uncertainties, market volatility and negative risks have recently escalated even more, he said.
Future Outlook for Executive Pay
“We do not anticipate any snap decisions from boards and compensation committees, and they are likely to change direction based on how domestic and external events develop,” he continued.” Performance, rewards, and governance of executives. According to the poll, CXO performance evaluation is still reliable in India.
“We find discretion being used to determine CXO incentives outcomes, even though CXO performance is evaluated on both financial and non-financial strategic measures and the review is data-driven. According to the report, this enables organizations to continue emphasizing responsibility while coordinating long-term business plans with compensation schemes.
Shift Towards Long-Term Incentives
CXOs are increasingly receiving multi-year stock grants, and in order to maximize return on investment, essential personnel are given one-time retention awards.
The study revealed that larger companies, particularly those comprising the Nifty50 Index, are opting for more complex multi-year performance share plans. The tried-and-true stock options or ESOP plans, on the other hand, are still preferred by comparatively smaller businesses.
Changing Performance Evaluation Models
“Some of the most high-performing teams internationally are compensated for outcomes but focus on the process.” Prominent Indian organizations are following suit. The ongoing conflict has reminded us of the inherent volatility in share-based payments.
We anticipate that more businesses will give their CXOs rewards based on internal success indicators rather than just a rise in share price. Boards and CHROs are promoting sustainable value creation with strong executive employment contracts and downside accountability systems, according to Ghose.
Frequently Asked Questions
1) For FY2025–2026, what is the median CEO salary in India?
The median salary for professional CEOs hit ₹10.5 crore, according to Deloitte India. This represents the weakest growth since the COVID-19 period and a modest 5% gain.
2) What caused the growth in CEO compensation to slow this year?
Weak stock market performance, which decreased stock-linked incentives that make up a sizable amount of executive compensation packages, is the primary cause of slower development.
3) Which executives’ salaries increased the most?
Chief Financial Officers (CFOs) had the largest rises due to increased demand, higher attrition, and additional responsibilities such as board-level responsibility and capital efficiency.
4) How do businesses currently set up CXO compensation?
Multi-year stock grants, performance shares, and selective retention bonuses are being used by businesses more frequently, particularly in larger companies like those in the Nifty50 Index.
5) What developments are we seeing in the assessment of executive performance?
Businesses are moving away from share price-linked awards and toward data-driven evaluations that combine financial and strategic measures, with a greater emphasis on internal performance.
Conclusion
As businesses place a greater emphasis on sustainable performance, governance, and strategic accountability than on short-term stock-driven gains, India’s CXO remuneration reflects cautious optimism, balancing market volatility with long-term incentives.
Disclaimer: This article is for informational purposes only and reflects market trends that may change based on economic and geopolitical conditions.
