Independent directors’ pay in Nifty 50 firms doubles to Rs 87.4 lakh in 5 years
independent directors at India’s top blue-chip companies has more than doubled in five years, reflecting their increased responsibility, time commitment and effort.
The median compensation for independent directors at Nifty-50 companies shot up 106% to Rs 87.4 lakh in FY24 from Rs 42.3 lakh in FY19, with a 25% pay jump in the last fiscal alone, showed an analysis of these companies shared with ET by specialised executive compensation advisory firm Exec-Rem Advisors.
Experts said the pay is being driven up by companies wanting to ensure they get adequate time and attention from independent directors as their roles become increasingly complex and demanding, requiring them to navigate unforeseen challenges and crises, provide oversight on critical issues, deal with stricter regulatory requirements, ensure continuity, and influence inclusivity and innovation.
“The role of an independent director has become very demanding, requiring a significant time commitment for board meetings, committee work, and staying informed on industry trends and company-specific issues,” said Anubhav Gupta, managing director of Exec-Rem Advisors.
The business environment is becoming increasingly complex with new uncertainties adding to volatility, he said. “Directors must be compensated well for their time and value they bring to the table,” he added.
The median compensation for independent directors at 37 of the Nifty-50 companies – excluding public sector undertakings as well as banking and insurance companies whose non-executive
