A new survey by Deloitte India reveals a 40% jump in average CEO compensation compared to pre-pandemic levels.  The current average CEO compensation now stands at Rs 13.8 crore.

The "Executive Performance and Rewards Survey 2024,"  also underscores a significant shift in the structure of CEO compensation packages.  More than half (over 50%) of a CEO's target compensation is now directly tied to performance metrics. This trend suggests a growing emphasis on holding CEOs accountable for company performance and results.

The survey also delves into the difference in compensation between promoter CEOs (those with ownership stakes in the company) and professional CEOs. Promoter CEOs receive an average compensation of Rs 16.7 crore, which is notably higher than the average for professional CEOs. This disparity can be attributed to factors such as the longer tenure typically seen with promoter CEOs.

Despite the rise in CEO compensation, the survey indicates a relatively stable CEO turnover rate.  Approximately 45% of BSE 200 companies have experienced a CEO change within the past five years. Interestingly, the majority (60%) of new CEOs are being promoted from within the company itself, suggesting a trend towards internal succession planning.

The survey offers valuable insights into the evolving landscape of CEO compensation in India. While average pay has increased significantly, performance is becoming a more critical factor in determining compensation packages. The survey suggests a trend towards promoting from within for CEO positions, potentially fostering leadership continuity and a deeper understanding of company culture.