Almost 50% of Nifty 50 CEOs, MDs earn over Rs 20 crore a year
Nifty 50 companies earned more than ₹20 crore in FY23, compared to one out of every four (27%) five years ago, a Deloitte study shared exclusively with ET has revealed.
Also, half of the dozen promoter-incumbents earned more than ₹20 crore in FY23, compared to 33% in FY18. In comparison, of the 29 professional incumbents, 45% earned ₹20 crore-plus, up from 24% in FY23, according to the study.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Senior Management ProgrammeVisitUniversity of Western AustraliaUWA Global MBAVisitIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitThe study analysed 41 of the Nifty 50 companies, excluding public sector undertakings and three other companies where there was no active incumbent, or the MD had voluntarily relinquished compensation. The five-year period saw a new benchmark for compensation — the ₹5-crore threshold.
Across all incumbents, only 5% earned less than ₹5 crore in FY23, compared to 19% in FY18. Not a single promoter CEO/MD earned less than ₹5 crore in FY23 (33% in FY18); in the case of professionals, it was 7% (14% in FY18).
However, companies have been paying a lower percentage of profits (0.35% in FY23 compared to 0.5% in FY18) as compensation to CEOs/MDs, but ratios for promoters in FY23 (0.59%) is two times that for professionals (0.28%).
«MD/CEO compensation in India has grown 12% annually over the last five years; more than double the growth observed in US. Despite that, compensation to profit ratio has reduced, implying responsible decision-making amidst greater scrutiny in these matters,» said Dinkar Pawan, director, Deloitte India.
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