CEOs in India are earning about two times more than their top management team, including their senior-most counterparts in the human resources function.


Hay Group’s annual report on executive compensation in the country found that CEOs are earning 1.9 times their top executives in business core roles, which include heads of sales and marketing, manufacturing, and business heads.


This went up to 2.1 times when compared with what top executives in business enabler roles, such as the heads of HR, R&D, or the chief information officer, are earning.


Hemant Upadhyay, managing consultant and leader of Hay Group India’s executive rewards practice, noted that the pay differential between executives across core and enabler functional roles has reduced in the past few years, indicating that the organisation considers both roles to be important stakeholders in business performance.


“In organisations where HR plays a proactive role in shaping business direction, the compensation is at par with core roles.”


However, both CEOs and their top teams can look forward to pay hikes greater than 10% in this year. Compensation of CEOs is expected to rise by 10.2% this year, relatively stable in comparison to the actual pay rises of 10% witnessed in 2013-14.


Top executives are also set to see a 10.5% pay increase, up from 10.4% last year. Upadhyay attributed this to a positive economic outlook, where organisations believe the stable government will likely boost their business prospects.


“From an overall perspective, India’s top management compensation mix continues to be more driven by fixed pay, in comparison to other Asian, European and American economies,” he noted.


Courtesy: HR online – 17/02/2015

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