Senior executives to see average pay hike of 9.1 pc in 2023

PTI 

New Delhi: Senior executives in India are expected to receive an average 9.1 per cent increase in their salaries this year, up from 8.9 per cent in 2022.

According to leading global professional services firm Aon plc, the average CEO compensation was Rs 8.4 crore, and it has increased 21 percent in the last four years, as there is an emphasis on rewarding executives for the value they bring to the organisation. According to Aon’s latest Executive Rewards Survey in India, for board and senior managerial positions, one in three organisations are focusing on improving diversity levels.

Boards are also embedding environmental, social and governance (ESG) factors, diversity and succession metrics in the longterm and short-term goals for CEOs and executive leaders. Aon’s 12th annual study, analysed data across 519 companies from more than 25 industries.

“Senior executives’ salary increases continue to focus on pay at risk, indicating the emphasis on rewarding executives for the value they bring to the organisation,” said Nitin Sethi, chief executive officer, Human Capital Solutions at Aon. Sethi further noted that in a rapidly evolving, volatile business environment, organisations seek to adopt executive pay programmes that drive the right behaviours, are cost effective and contribute to long-term business results.

“Org anisations can therefore benefit from a data-driven approach to make better decisions regarding complex executive compensation issues while navigating business volatility,” Sethi said.