Median CEO Salary In India Inc Hits ₹10.5 Crore In FY26, But Cfos See The Sharpest Surge: Deloitte Survey

(MENAFN- Live Mint) The median compensation for non-promoter or professional CEOs in India stood at ₹10.5 crore in FY2025–26, marking a modest 5% year-on-year increase and the slowest pace of growth since the COVID-19 period, according to a new report by Deloitte India.

The modest rise in their pay comes amid subdued equity market performance, which has weighed on stock-linked payouts - a key component of executive remuneration packages.

According to the report, published Monday, 30 March, around one-third of CEO compensation is tied to equity incentives such as stock options and performance shares. Hence, slower gains in the broader market limited the overall growth in chief executives' compensation.

The Indian markets ended FY26 on a weak note, with benchmark indices logging their worst annual performance since the Covid-19 pandemic six years ago. A sharp selloff on the last trading day of the financial year 2025-26 further weighed on the sentiment, sealing the weak finish for the markets.

Growth in other executives' pay; who is getting paid the most?

The salaries of other C-level executives increased by 4% to 10%.

Among the other CXOs, chief financial officers (CFOs) witnessed the highest compensation increase given the high attrition, focus on capital efficiency and direct shareholder accountability. In many cases, CFOs also hold additional board-level responsibilities.

Median India CFO payout stood at ₹4.5 crore. Additionally, the chief digital officer role is increasingly emerging as a CXO role, a trend that was not necessarily the case earlier, the report noted.

Commenting on the slower growth in C-level executives' pay, Anandorup Ghose, Partner, Deloitte India, said that CXO compensation decisions in India have shown great maturity.

“Given the ongoing underperformance of Indian equity markets over the past 12-18 months, it is natural that pay increases were lower last year. Market volatility and downside risks have increased further recently amid ongoing geopolitical risks,” he said.

He added, "We do not expect any knee-jerk reactions from boards and remuneration committees, and they are likely to change course depending on how domestic and external events unfold."

Executives' performance, incentives and governance

The survey found that CXO performance assessment remains robust in India.

"While CXO performance is assessed on both financial and non-financial strategic metrics, and the evaluation is data-driven, we see discretion being applied to determine CXO rewards outcomes. This helps organisations align long-term business roadmaps to compensation strategies while continuing to focus on accountability," the survey said.

Multi-year stock grants are increasingly used for CXOs, while one-time retention awards are selectively extended to key talent to drive a high return on investment.

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The study revealed that larger companies, particularly those comprising the Nifty50 Index, are opting for more complex multi-year performance share plans. In contrast, relatively smaller companies still prefer the tried-and-tested stock options or ESOP plans.

"Some of the most high-performing teams globally are rewarded for outcomes but focus on the process. Leading organisations in India are also doing the same. The ongoing conflict has reminded us of the inherent volatility in share-based payments. We expect more companies to reward their CXOs on internal performance metrics than simply a share price increase. With robust executive employment contracts and downside accountability mechanisms, Boards and CHROs are driving sustainable value creation," Ghose said.

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