Global brands’ pay scale tips in favour of Indian chiefs
As per an ET study of over a dozen top brands including Samsung, Maruti Suzuki, LG, Sony, Xiaomi, Whirlpool, and Mahindra & Mahindra, with data sourced from regulatory filings, the Indian chief executives drew at least 15% higher gross remuneration in 2023-24 than the expat chief executives, including commission and perquisites. And in most cases even more, with the pay gap getting wider last fiscal.
Industry executives said this reflects the fact that several global brands have started relying on local talent, and there is no more hardship allowance for an India posting in the CEO package, unlike earlier.
“The pay gap between an Indian professional CEO and expat CEO working in India will only widen in time to come,” said Shiv Agrawal, managing director at ABC Consultants, an executive search and talent advisory firm. “There is always a premium for high-quality Indian CEOs since, in most cases, their experience or quality is a notch or two higher. Hardship allowance for working in India has now become history. Of course, some companies may always like to have an expat from their home country to lead Indian operations, but it’s that much only,” said Agrawal.
Samsung India’s expat managing director JB Park’s gross salary in FY24 was ₹6.8 crore, while that of LG India’s managing director Hong Ju Jeon was ₹5 crore. Samsung is the country’s largest consumer electronics company, with sales of ₹1,02,626 crore.
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