India Inc's professional chief executive officers (CEOs) saw their salaries increase by 6.5 percent in 2019-20, while promoter CEOs saw a decline in average salaries.
The average salaries of professional CEOs rose 6.5 percent to Rs 13 crore in FY20, according to the "million-dollar CEO club" study by EMA Partners, commissioned by The Times Of India.
During the same period, the average salary of their promoter counterparts fell 9 percent to Rs 21 crore, the report said. However, the average compensation of promoter CEOs was 62 percent higher than that of professional chief executives.
The study's sample is comprised of BSE 200 companies and did not include executives' stock options.
The analysis is based on compensation details in balance sheets of companies for FY20, it excludes any impact of the COVID-19 pandemic on CXO (including CFO) compensation.
According to the report, the number of CXOs earning $1 million (approximately Rs 7 crore) and above has risen slightly to 150 from 146 the previous year.
Sun TV's Kalanithi Maran and Kavery Kalanithi took home the highest salaries, earning Rs 87.5 crore each.
Of the 150 CXOs, 81 are professional CEOs and 69 are promoters, the report said.
"The trend over the last 12 months indicates that promoter CEOs have indeed taken a larger hit on their compensation notwithstanding potential dividend earnings out of their businesses as shareholders. On the other hand, we have seen an increase in the overall compensation for professional CEOs. We believe this anomaly will see a gradual correction as more professionals step up and increase their compensation driven by business performance." EMA Partners India MD K Sudarshan was quoted as saying by The Times of India.