Top-level salaries, averaging a 20 per cent jump every year, are now hovering around Rs 2.5-3 crore.
CEO salaries almost always include deferred payments in the form of ESOPs and bonuses but would average out to Rs 3 crore per annum, according to executive search firms.
Traditionally, of course, technology and financial services companies are known to offer these mind-boggling salaries, but now retail and telecom sectors are fast catching up, say sources. Cadbury, Pantaloon Retail and Bharti reportedly figure in this exclusive bracket.
Sunit Mehra, Country Manager, Hunt Partners, an international search firm that specialises in CEO and Board searches, says that the though the Rs 3 crore figure looks a little high, there are `several cases at this level.' Commercial banking, healthcare, consulting, investment banking, private equity are some oft-mentioned sectors.
K. Sudarshan, Managing Partner, EMA Partners International, says a large chunk of the remuneration, almost 50 per cent, would be achievement-based. For instance, a recent mandate that this global executive search firm received and has already wrapped up was for a CEO who will potentially make a couple of million dollars in the next two years.
"While fixed salary is around Rs 1.5 crore, an equal amount would come from the variable component for these positions," he says.
In fact, Indian companies are currently including ESOPs in a big way to attract top talent. "While global companies are moving away from stock options, Indian companies are now up the curve," according to him.
Progeon, HDFC and ICICI are reportedly taking the ESOP route to perk up compensation to top-level talent.
On whether salary levels are hyperbolic, Mehra is of the view that pay packets in the country were depressed for a long time and are only now coming in line with equivalent markets elsewhere in the world. "This was a necessary correction which has been taking place," he feels, adding that the salary growth may not be at the same rate in the coming years.
Navnit Singh, Partner, Heidrick & Struggles, an MNC search firm, has seen high salary mandates becoming commonplace. Even mid-level managers demand anywhere between Rs 60 lakh-90 lakh and get it. "Candidates are very much aware of the current salary levels. Demand it and you will get it is the attitude," he says.
