It?s a rewarding time to be a CEO in India?especially in the BFSI (banking, financial services and insurance) sectors, say experts?thanks to the astronomical growth in salaries. This, despite growing caution among companies when it comes to giving their head honchos high pay-packets.
According to headhunters and industry watchers, CEO salaries in the financial services sector are among the highest, ranging between Rs 1.5 crore and Rs 3 crore a year. Private banks pay their CEOs a handsome Rs 2-6 crore, whereas in IT, telecom and insurance, salaries are in the slightly more modest Rs 1-2 crore range.
In the media & entertainment segment, CEO salaries range between Rs 1.5 crore and Rs 2.75 crore, while in the pharma sector, they are typically in the Rs 75 lakh to Rs 1.5 crore range. However, the manufacturing sector is the worst paymaster of the lot, with CEO salaries here ranging from Rs 40 lakh to Rs 80 lakh.
Says Tapesh Sengupta, managing director of CHR Global HR Consultancy, ?CEO salaries, especially in the private equity and mutual fund sectors, are increasing and in the next two to three years, may rise more than 25-30% compared to other sectors.?
CEOs in the booming retail sector are paid in the range of Rs 80 lakh to Rs 1.2 crore, while those on the corner rooms of MNC retail companies get paid up to Rs 2 crore a year.
CEO compensation appears higher since companies no longer talk in terms of salaries and perks; now, they talk about ABC (actuals + benefits + complimentaries). The actual salary includes basic plus HRA, medical allowance, special allowances and perquisites. Benefits in the salary package include performance-based incentives, which can be as much as 100-200% of the CEO?s actual salary per annum. The complimentary component includes stock options or a signing-on bonus, which can amount to around Rs 50-70 lakh.
Says Ashish Arora, managing director, HR Anexi, an executive search firm, ?Salaries, however, are too hyped at present and will start to pinch once they exceed current levels.?