Independent directors' pay more than doubles in 5 years

economictimes.indiatimes.com:

Independent directors at India's top blue-chip companies have seen a sharp rise in their compensation as their roles become increasingly challenging amid mounting business complexities, intense stakeholder scrutiny, and stricter regulatory requirements.

The median compensation for independent directors at these firms has more than doubled to ₹72 lakh in FY23, from ₹35.5 lakh five years ago, an analysis of Nifty 50 companies by specialised executive compensation advisory firm, Exec-Rem Advisors shared with ET has revealed.

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Independent directors in the 75th percentile of Nifty 50 companies earned an average of ₹1.04 crore in FY23, up from ₹67.6 lakh in FY18. At the lower end, companies in the 25th percentile paid independent directors an average of ₹43.8 lakh, more than double from ₹19.18 lakh in FY18, the study showed.


The study analysed 37 firms, excluding public sector undertakings and banking and insurance companies since non-executive director pay is regulated in these industries by RBI and IRDAI respectively.

While increases in compensation have happened across the board, those in the lower quartile have seen a bigger jump.
Companies in the 25th percentile have seen median compensation more than double from Rs 19.18 lakh in 2018; in comparison, those in the 75th percentile have seen a 54% jump from Rs 67.56 lakh. Anubhav Gupta, MD of Exec-Rem Advisors, said the trend reflects companies compensating independent directors suitably for the extra