CEO salaries have seen a spike during the last decade as the occupant of the corner office operates in a challenging VUCA world—volatility, uncertainty, complexity and ambiguity. With CEOs taking home large payouts, there has been a greater scrutiny over his/her performance. The scrutiny has moved from a simplistic calculation of the return on CEO pay over profits to a holistic view covering other key financial parameters. So, which Indian company got the best value for its payout to a CEO?
Randstad India MD & CEO Moorthy K Uppaluri said the current CEO compensation structure is set to undergo a paradigm shift with higher emphasis on performance-based pay and stock awards. “CEOs are increasingly accepting such results-driven compensation structures which are outcome- based and linked to the company’s success. The average CEO compensation was Rs 7.6 crore in FY 2015, a 17% increase over the previous year’s average,” said Uppaluri.