Why Top Indian CEOs Are Earning More Than Ever Before

India Inc is placing a big bet on leadership as global business gets more unpredictable. The companies are facing a much more intricate situation than before, the geopolitical tensions, and trade barriers along with the disruptions caused by the pandemic are all part of the landscape they must navigate. So as to be one step ahead, a lot of Indian companies are gradually turning over the control to very professional CEOs with a lot of experience—and paying them huge amounts for that.

As per an Economic Times report, Indian firms have begun to offer million-dollar-plus compensation packages without any hesitation when it comes to leaders who would be able to steer the operations across multiple markets, calm the investors, and perform well in the volatile situation.

Sharp Rise in $1 Million-Plus CEO Salaries

The global executive search firm Stanton Chase's data provides evidence of the rapid speed of this change. The number of professional CEOs in BSE 200 companies with annual salaries surpassing $1 million or Rs 8 crores or more rose by almost 71%, from 85 five years ago to 145 in FY25.

Meanwhile, the number of promoter-led CEOs has grown modestly, from 60 to 65 over the same period.

“This reflects the growing institutionalisation of Indian corporations,” said Amit Agarwal, Managing Director (India & Singapore) at Stanton Chase. “Boards today want independent leaders with global exposure who can handle sophisticated stakeholder expectations, while promoters increasingly focus on long-term strategy.”

Global Exposure, Complex Businesses, Higher Pay

According to the experts, one of the main reasons behind the rise in CEO pay is the Indian market's closer connection to the world economy. The companies that earlier operated in the local market only, now are facing the challenges of international supply chains, direct overseas investment, private equity governance, and global compliance requirements.

“Ten years ago, many companies were India-centric,” explained Anshuman Das, CEO of Longhouse Consulting. “Today, operations are multi-dimensional, and governance expectations are far higher.”

The IT and ITeS industry has faced the steepest rise in CEO remuneration in the past five years, followed by the manufacturing sector which recorded a 34% hike. Recruiters maintain the trend that began post-pandemic and continues to escalate due to the impact of global conflicts—not because the promoters are withdrawing, but rather the leadership demands are evolving.

Who Are the Highest-Paid CEOs?

The data also reveals India’s top corporate earners:

• Thierry Delaporte, the previous Wipro CEO secured the first position with a total remuneration of Rs 168 crore in FY25, including severance and the valuation of stock options.
• Sandeep Kalra, the CEO of Persistent Systems took home Rs 148 crore.
• Pawan Munjal, CMD of Hero MotoCorp was among the promoter-led companies with a compensation of Rs 109 crore.

From Fixed Pay to Performance-Linked Rewards

One more big change has occurred in how the CEOs are compensated. Fixed salaries are now less attractive compared to other forms of remuneration. In FY25, the fixed pay segment comprised only 31% of total compensation which is a decline from 35% in FY21. The remaining portion is progressively linked to performance incentives, ESOPs, and long-term value creation.

“It’s a much more accountability-driven model now,” said Mala Chawla, Managing Director (India) at Stanton Chase. “Pay is linked to profitability, cash flows, and the ability to build resilience through business cycles.”

CEO Pay Rises, But With Business Growth

On average, the total CEO remuneration went up to Rs 10 crore from Rs 9.3 crore while the total amount paid to the highest-paid CEOs enlarged from Rs 2,700 crore to Rs 4,700 crore. According to the experts, this growth is a reflection of the increasing sizes and profits of companies—rather than a case of freely escalating executive salary costs.

A Sign of a Maturing Corporate India

The trend of moving up the salary scale for CEOs and offering millions is a sign of a deeper transformation occurring in India Inc. The fright of the billion-dollar CEOs indicates that companies are making good governance and the gaining of a competitive edge in the world their main priorities.

In the current uncertain environment, Indian boards are making one thing clear: if the CEO can sustain value, then he/she is worth every rupee.