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India’s top 10 private companies by market capitalization reported a compound annual growth (CAGR) of 2.89 percent in annual salaries paid to their top brass, chief executive officer (CEO) and managing director (MD) in the last five years (FY20-FY24).According to ETHRWorld’s analysis of companies’ annual reports, the overall remuneration paid to CEO and MD stood at Rs 272.79 crore in FY20, which increased by almost Rs 42 crore to Rs 314.56 crore in FY24.“Remuneration” refers to the compensation or payment made to directors, including executive and non-executive directors (e.g., independent directors), for their services. It encompasses salaries, fees, commissions, stock options, bonuses, or any other financial or non-financial benefits provided to these individuals.Hence, salaries are non-comparable as the remuneration mentioned involves various aspects such as the C-suite leader being a co-promoter, shareholding pattern, board membership, and consolidation among others.Further, a few CXOs relinquished their salaries as a matter of post-pandemic affect. For instance, Mukesh D Ambani, Chairman and Managing Director (CMD) of Reliance Industries (RIL), has not received a salary in the last four years. He received Rs 15 crore in FY20.Similarly, Sandeep Bakhshi, CEO and MD of ICICI Bank also “voluntarily relinquished” his fixed compensation of basic and supplementary allowances for FY21.
