India CEO earnings have doubled over past 2 years
By Nirmala Ganapathy, The Straits Times/ Asia News Network
September 13, 2016, 12:10 am TWN
Singapore — In India, the world’s fastest-growing economy where millions still live in poverty, the remuneration of chief executive officers (CEOs) in top companies is going up. In fact, they are likely to be earning double of what they were paid just two years ago.
The average annual salary of a CEO in 20 private companies listed on India’s Sensex, the stock market index, is close to 200 million rupees (SG$4 million) for 2015-2016, compared to 100 million rupees in 2013-2014, the Press Trust of India reported recently.
Among the highest paid is Mr. Anil Manibhai Naik, the group executive chairman of the multinational conglomerate Larsen & Toubro, whose salary tripled to around 660 million rupees from 210 million rupees.
India’s corporate sector, which for the most part has been dominated by family-run businesses, has grown exponentially with the entry of multinational companies in the past two decades amid fast-paced economic growth and gradually easing regulations.
The growing demand for CEOs with international experience in India, experts say, means that companies have to offer more attractive pay packages, a major factor behind the rising salaries.
“Indian companies have started thinking globally. They are no longer constrained to India,” Mr. Shriram Subramanian, founder and managing director of governance research firm InGovern.
“The hunt for talent (in India) is a global hunt now. Companies, such as Tata Motors and Wipro, have hired CEOs from abroad or someone with international experience,” Subramanian noted.