The median compensation for non-promoter, professional CEOs in India stood at ₹10.5 crore in FY26, marking a modest 5% increase over the previous year. This represents the slowest growth in CEO pay since the Covid-19 period, according to the Deloitte India Executive Performance and Rewards Survey 2026.
A significant factor behind the muted growth is the subdued rise in stock-based compensation. Nearly one-third of CEO pay is linked to stock awards, and the slower appreciation in their value last year contributed to the overall moderation in compensation growth.
CFOs lead CXO pay growth in times of rising responsibilities
Compensation for other CXOs recorded an increase in the range of 4% to 10%. Among them, Chief Financial Officers (CFOs) witnessed the highest pay growth, driven by elevated attrition levels, a sharper focus on capital efficiency, and increased direct accountability to shareholders.
In several organisations, CFOs are also taking on additional board-level responsibilities, further strengthening their strategic importance. The median compensation for CFOs in India now stands at ₹4.5 crore.
Meanwhile, the role of chief digital officer is increasingly evolving into a core CXO position, reflecting the growing importance of digital transformation across businesses.
Market volatility weighs on compensation trends
Commenting on the findings, Deloitte India Partner Anandorup Ghose said that CXO compensation decisions in India are becoming increasingly mature and measured.
“Given the underperformance of Indian equity markets over the past 12–18 months, lower pay increases were expected. Market volatility and downside risks have intensified further amid ongoing geopolitical uncertainties,” he said.
Performance assessment remains robust and data-driven
The survey highlights that CXO performance evaluation frameworks in India remain strong and well-structured. Assessments are based on a combination of financial and non-financial strategic metrics, supported by data-driven methodologies.
At the same time, organisations continue to exercise discretion in determining final compensation outcomes. This approach enables companies to align long-term business strategies with executive rewards while maintaining accountability and flexibility.
Shift towards customised and multi-year incentive plans
Remuneration strategies in India are undergoing a notable change particularly in the design of stock-based incentives. Companies are moving away from a one-size-fits-all approach and are increasingly adopting multiple long-term incentive plans tailored to different employee groups.
Multi-year stock grants are becoming more common for CXOs, while selective one-time retention awards are being used to retain critical talent and maximise return on investment.
The study also notes that larger firms, especially those within the Nifty50 Index, are adopting more sophisticated multi-year performance share plans. In contrast, smaller companies continue to rely on traditional stock options or ESOP structures.
Focus turns from share price to internal performance
Ghose further emphasised the evolving philosophy behind executive rewards: “Globally, high-performing teams are rewarded for outcomes while maintaining a strong focus on processes. Leading organisations in India are adopting a similar approach.”
He added that ongoing geopolitical conflicts have shown the inherent volatility in share-based compensation. “We expect more companies to increasingly link CXO rewards to internal performance metrics rather than relying solely on share price movements,” he said.