New Delhi: According to a recent report by Crisil, Chief Executive Officers (CEOs) of Indian companies earn 130 times more than a regular employee. The report points out the pay disparity between regular employees and top executives. According to the report, heads of private companies in India earn 137 times more money than regular employees. However, this is much lower than the global average which is between 250 times to 350 times.
Meanwhile, according to the companies surveyed in the report, the ratio of CEO pay-to-median pay is the fourth most difficult environmental, social and governance (ESG) target to meet.
Tire companies are at the top of the industry in terms of pay disparity. The report said CEOs of tire companies get 375x more salary than a regular employee, followed by auto original equipment manufacturers (OEMs) and textile companies 296x and 258x, respectively.
Infosys CEO Salil Parekh’s huge salary hike shows how even CEOs of IT companies are getting bumper salaries. The company told public exchanges that Parekh will get a revised remuneration of Rs 79 crore annually – an 88% increase from his previous annual salary of Rs 42 crore.
Mirren Lodha, director of Crisil Research, told Moneycontrol that ideally, CEO pay should be aligned with the growth of the company, incentivizing CEOs adequately.
The pay disparity is lowest in the FMCG (134x) and the metal sector (133x). However, in Public Sector Undertakings (PSUs), CEOs earn just 4.8 times more than a regular employee in the company, the report suggests. Read also: fraud alert! This WhatsApp scam allows hackers to hijack your account via phone call
“CEO salaries in PSUs have been very low (historically), especially when compared to the private sector. Hence, pay parity is better in PSUs,” Lodha told the publication. Read also: This BSNL prepaid plan offers additional validity of 60 days: Check out benefits and more
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