The pay levels of chief executive officers (CEOs) in the information technology (IT) sector have grown at a faster pace than profits over the past five years, said a report by proxy advisory firm Indian Institute of Advanced Study (IiAS). While a fourth of the CEOs drew a remuneration of Rs 100 million or more in 2016-17, the median pay in the sector is in line with the market. Further, the ratio of CEO-pay to median employee pay, at 62 times, is among the lowest across sectors.
The data has been sourced from annual reports for the S&P BSE 500 companies
and pertains to CY2016 or FY17, depending on financial year-end for various companies.
Professional CEOs in the sector draw a much higher remuneration than promoter CEOs.
This can be partially attributed to the fact that many IT firms in India have chosen to invest in professional leadership, added IiAS. "Given their vast geographic footprint, these firms need to benchmark their CEO salaries to global peers - something which has driven up salaries at a time when profits have been suppressed.
While attracting top talent will continue to remain critical, boards need to ensure that the CEO-pay to median employee salaries remains in a tight range," IiAS said.
Women representation in the sector remained poor, with eight women executive directors, out of 62, in the sector.