India Inc is rewriting its leadership playbook—and the pay packets are following.
On December 15, 2025, multiple reports citing fresh data from global executive search firm Stanton Chase said India’s largest listed companies are increasingly relying on professional (non-promoter) CEOs to steer growth through an era marked by geopolitical risk, trade frictions, and volatile global demand. The shift is showing up clearly in compensation: the count of professional CEOs earning $1 million-plus (over ₹8 crore) across BSE 200 companies has jumped sharply, even as boards tighten the link between pay and performance. [1]
This CEO story also connects to a broader executive-pay surge already underway in corporate India. An earlier FY25 analysis by EMA Partners India of BSE 200 companies found the wider “million-dollar CXO” cohort rose to 227 executives, with much of the jump driven by equity-linked payouts such as exercised ESOPs. [2]
Together, the two strands tell a single story: India’s executive compensation is becoming more institutional, more global-benchmark-driven, and more equity- and outcome-linked—with a growing share of the biggest rewards landing on leaders who can deliver in uncertainty.
Professional CEOs flood the $1 million-plus club in BSE 200 companies
The headline number from today’s reports is striking:
- In FY25, the number of professional CEOs in BSE 200 firms earning $1 million+ (over ₹8 crore) climbed nearly 71% to 145, up from 85 five years earlier. [3]
- Over the same period, promoter CEOs in the million-dollar bracket stayed relatively stable, rising modestly to 65 from 60. [4]
In other words, the club is growing—and it’s increasingly led by hired, board-backed professionals, not founders or family leaders.
Executives and recruiters quoted in the reports frame the shift as a governance and capability upgrade rather than a retreat by promoters. Boards want leaders with independence, cross-cycle experience, and the ability to manage complex stakeholder demands as Indian companies deepen their global exposure. [5]
Where CEO pay is rising fastest: IT/ITeS leads, manufacturing follows
Not all sectors are seeing the same pay momentum. The data highlights technology-led businesses as the epicenter of the million-dollar CEO trend:
- IT/ITeS leads the million-dollar CEO cohort, described as having the biggest jump in compensation over the past five years. [6]
- Manufacturing followed, with compensation up 34% over the period referenced in the report. [7]
The sector split matters for two reasons. First, it reflects where India’s most globally exposed revenue streams sit—technology services, digital engineering, and product-led platforms. Second, it signals where boards feel the greatest pressure to retain leaders who can navigate fast-changing client demand, AI-driven disruption, and international competition.
FY25’s biggest CEO pay packages: who topped the list
The reports also identify top FY25 pay packages—names that have become shorthand for how large and varied CEO compensation can be when equity, incentives, and end-of-tenure payments are included.
Among the highest FY25 totals cited:
- Thierry Delaporte, former Wipro CEO, topped the list at ₹168 crore in FY25. [8]
- Sandeep Kalra, CEO of Persistent Systems, followed with ₹148 crore. [9]
- Among promoter CEOs, Pawan Munjal (Hero MotoCorp) led with ₹109 crore. [10]
Even without a full company-by-company breakdown, the takeaway is clear: the top end of India’s CEO compensation is now comfortably in nine-figure rupee territory for select leaders—particularly in tech and tech-adjacent enterprises.
The new compensation model: less fixed pay, more “pay-at-risk”
A major development in the FY25 story is not just how much CEOs are earning—but how they earn it.
Boards are increasingly shifting away from guaranteed cash and toward outcome-linked rewards:
- Fixed compensation fell to about 31% in FY25, down from 35% in FY21, according to the report’s cited data. [11]
- Average CEO compensation rose to ₹10 crore in FY25, up from ₹9.3 crore in FY21. [12]
- Total compensation (in aggregate) jumped to ₹4,700 crore from ₹2,700 crore over the same period mentioned in the reports. [13]
This structure reflects a boardroom balancing act: pay more to attract scarce leadership talent, but anchor a larger slice of compensation to measurable outcomes—profits, cash flow, resilience, and longer-term value creation. [14]
Crucially, the reports also stress an important nuance: the expansion of the million-dollar club is being attributed to Indian companies becoming larger and more profitable, not simply to “salary inflation.” [15]
Why professional CEOs are in demand now: uncertainty, complexity, and new capital
So what’s driving boards to lean harder on professional CEOs?
The reporting points to a business environment where the old playbook is less reliable: post-pandemic demand shifts, persistent geopolitical flashpoints, trade protectionism, and global investor scrutiny. Corporate strategies now require leaders who can manage multi-market operations, handle institutional stakeholders, and respond quickly to external shocks. [16]
Another force: private equity and institutional capital. As more large businesses bring PE onto the cap table (or operate under closer scrutiny from public markets), boards face stronger pressure to professionalize governance and leadership selection. [17]
This is why “professional CEO” has become more than a hiring label. It’s increasingly a strategic choice: boards paying a premium for leaders who can deliver stability, credibility, and transformation at scale. [18]
Beyond CEOs: India’s “million-dollar CXO” cohort hits 227—and ESOPs are the accelerant
While today’s headlines focus on CEOs, the broader executive layer is experiencing its own surge.
An FY25 analysis of BSE 200 companies by EMA Partners India found:
- The number of executives earning $1 million+ rose to 227 in FY25, from 213 in FY24 (up 6.6%). [19]
- Their combined compensation climbed to ₹7,025 crore, up from ₹5,144 crore (an increase of 36%+). [20]
What’s powering the jump? A big part of the answer is equity monetization.
The analysis highlights how exercised stock options and ESOPs can dominate annual pay totals—especially for founders and leaders at new-age listed companies:
- Yashish Dahiya (PB Fintech/PolicyBazaar) topped the list at ₹641.32 crore, including ₹638.35 crore in exercised stock options. [21]
- PB Fintech’s Alok Bansal ranked third at ₹247.98 crore, including ₹243.46 crore in exercised ESOPs. [22]
- The analysis also noted new-age leaders in the top 10 from Swiggy, with large portions of compensation attributed to ESOPs. [23]
A separate note from corporate governance advisory firm InGovern similarly pointed to the combination of a strong stock market, ESOP liquidity, and a limited pool of experienced leaders as factors escalating executive compensation levels. [24]
The key context for readers: these are often not “monthly salary” numbers. They can reflect one-time or timing-driven equity events that convert long-held options into realized gains—making a single fiscal year look extraordinary.
What this means for India Inc in 2026: the leadership market gets tighter
The pay trend is unlikely to fade quietly, because it’s rooted in structural changes:
1) India’s leadership pipeline is under strain at the top.
Both the CEO and CXO datasets point to a scarcity premium for leaders with global exposure and proven transformation experience—especially in tech-led businesses. [25]
2) Listed-company scrutiny will rise alongside pay.
As compensation expands, boards will face greater pressure to show clear alignment with performance, transparent disclosures, and well-structured long-term incentives—particularly when headline numbers are driven by equity exercises.
3) Promoter vs professional is becoming less of a binary.
Promoters aren’t disappearing; instead, many businesses are separating ownership and operational leadership more cleanly. Meanwhile, founder-led listed companies are formalizing pay structures as they mature in public markets. [26]
Bottom line
The news cycle on December 15, 2025 underscores a pivotal shift: professional CEOs are now the dominant force in India’s million-dollar salary club, and boards are increasingly willing to pay top dollar—while also pushing more compensation into performance-linked structures. [27]
At the same time, the wider executive layer is seeing an even sharper effect from equity-linked payouts, with FY25’s million-dollar CXO cohort reaching 227 and aggregate payouts rising rapidly—turning ESOP liquidity and stock-market strength into a powerful new driver of headline compensation. [28]
References
1. timesofindia.indiatimes.com, 2. m.economictimes.com, 3. timesofindia.indiatimes.com, 4. timesofindia.indiatimes.com, 5. timesofindia.indiatimes.com, 6. timesofindia.indiatimes.com, 7. timesofindia.indiatimes.com, 8. timesofindia.indiatimes.com, 9. timesofindia.indiatimes.com, 10. timesofindia.indiatimes.com, 11. timesofindia.indiatimes.com, 12. timesofindia.indiatimes.com, 13. timesofindia.indiatimes.com, 14. timesofindia.indiatimes.com, 15. timesofindia.indiatimes.com, 16. timesofindia.indiatimes.com, 17. timesofindia.indiatimes.com, 18. timesofindia.indiatimes.com, 19. m.economictimes.com, 20. m.economictimes.com, 21. m.economictimes.com, 22. m.economictimes.com, 23. m.economictimes.com, 24. www.ingovern.com, 25. m.economictimes.com, 26. timesofindia.indiatimes.com, 27. timesofindia.indiatimes.com, 28. m.economictimes.com
