New Delhi: Chief executive officers (CEOs) of Indian companies make 130 times more than a regular employee, according to a recent CRISIL report. The report points out the pay inequality between regular employees and the top brass. According to the report, the chiefs of private companies in India make 137 times more money than regular employees. However, this is much lower when compared to the global average which ranges 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 toughest environmental, social and governance (ESG) target to meet.
In terms of industry wise pay disparity, tyre companies are at the top spot. The report noted that CEOs of tyre companies receive 375x more salary than a regular employee, followed by auto original equipment manufacturer (OEM) and textile companies at 296x and 258x, respectively.
The massive salary hike of Infosys CEO Salil Parekh shows how CEOs of IT companies are also receiving bumper salaries. Parekh will get revised remuneration of Rs 79 crore annually – an 88% hike from his previous annual pay of Rs 42 crore, the company told public exchanges.
Miren Lodha, director of CRISIL Research told Moneycontrol that ideally, CEO pay should be linked with the growth of the company, adequately incentivising CEOs.
The pay disparity is the lowest among FMCG (134x) and metals sectors (133x). However, in public sector undertakings (PSUs), the CEOs make just 4.8x more than a regular employee in the company, the report points out. Also Read: FRAUD ALERT! THIS WhatsApp scam allows hackers to hijack your account via a phone call
“CEO pay in PSUs has been very low (historically) especially when compared to the private sector. Hence, the pay parity is better in PSUs,” Lodha told the publication. Also Read: THIS BSNL prepaid plan offers 60 days additional validity: Check benefits and more