Cash trumps perks for C-Suites

Hay survey shows gap between salaries paid to top team and second rung is narrowing

Salil Panchal
Published: Feb 20, 2015 06:29:22 AM IST
Updated: Feb 18, 2015 12:56:27 PM IST

Life is not a template and neither is mine. Like several who have worked as journalists, I am a generalist in my over two decade experience across print, global news wires and dotcom firms. But there has been one underlying theme in each phase; life gave me the chance to observe and tell a story -- from early days tracking a securities scam to terror attacks and some of India's most significant court trials. Besides writing, I have jumped fences to become an entrepreneur, as an investment advisor -- and also taught the finer aspects of business journalism to young minds. At Forbes India, I also keep an eye on some of its proprietary specials like the Rich list, GenNext and Celebrity lists. An alumnus of Xavier Institute of Communications and H.R College of Commerce and Economics in Mumbai, I have worked for organisations such as Agence France-Presse, Business Standard, The Financial Express and The Times of India prior to this.

A study carried out by global management consultancy Hay Group reveals that the difference in salaries between the core team (CEOs/MDs) and enablers (department heads and chiefs of business groups) is narrowing in India. It is now two times, down from about 3.5 times in 2012. “These are the trends seen across all industries,” says Hemant Upadhyay, managing consultant of Hay Group India. The report is based on the analysis of 2,610 jobs across 205 organisations from June 2014 to December 2014. “Earlier, we would typically see compensation in the form of an overseas trip or visits to a key factory. But now they are monetising the benefits,” says Upadhyay.

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The report showed that the variable portion in the salaries of top executives was going up, from 25-28 percent to 30-40 percent.

The study also said that the compensation of CEOs and MDs in India is expected to show a flattish growth of 10.2 percent in the fiscal year ending March 2015. Top executives are likely to see a 10.5 percent rise in pay in the twelve months up to March 2015. 

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(This story appears in the 06 March, 2015 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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