Professional CEOs got a raise in 2019-20 even as average salaries of their Promoter counterparts drop due to economic slowdown before the pandemic. However, 62% higher compensation was taken home by promoter CEOs less than professional counterparts according to the ‘million-dollar CEO club’ study by EMA Partners, commissioned by TOI.
The average salaries of professional CEOs rose by 6.5% to rupees 13 Crores in 2019-20 and promoter CEO salary saw a decline of 9% 2 rupees 21 crores.
BSE 200 companies were used as samples which did not include stock options. Since the study took account compensation detail in the balance sheet of the company for 2019-20 it excluded the trend that may have shaped CXO compensation following the Covid pandemic.
The number of CXO earning million dollars i.e. 7 crores was up to 150 from 146 last year. The club is led by Marans (Kalanithi Maran and Kavery Kalanithi) with a compensation of Rs 87.5 crore.
Of the total CEOs 81 are professional while promoters are 69. Overall professional compensation increased 1.5 % while promoters increased 3%.
It is to be noted that a gap between average salaries of promoter CEOs (rupees 23 crores in FY 19) and professional CEOs (rupees 12 crores) which was earlier nearly double has reduced to 62% in financial year 2020.