Executive Centre
Overview

Indian CEO Statistics

In 2004, CEO’s in IT & BPO companies’ will earn in one month what an average programmer in the IT firm or an average FTE (Full time Equivalent) in a BPO earn in 2 years.

  • The total compensation of the highest paid resident Indian CEO is 500,000 $ base + 300,000 $ variable. The CEO belongs to a BPO of a large American bank.
  • The total compensation of the highest paid resident American CEO is 27.2 Million $ - The CEO of Colgate Palmolive.
  • Cash Compensation of BPO CEOs outnumbers that of their counterparts in the IT firms by 150 %.
  • In 2004, restricted stock and other performance-based incentives make up 35% of total CEO compensation in India, up from 18% in 2003.
  • According to an internal Redileon study of 40 Indian IT & BPO companies, CEO’s at many of the biggest  
    technology space,. companies in India got an average 15% raise last year compared to a staggering 35% for their counterparts in the BPO However, stock options constituted 59% of long term compensation, which is down from 82%.
  • Acceptance of CEO’s under 40’s is highest in the BPO space. 
  • CEO Pay and top management team morale- An internal Redileon study infers that a high compensation to the CEO erodes loyalty amongst senior managers. This study of IT & BPO companies found that where CEO pay exceeded company norms,
  • The average total compensation for CEOs in 2003 in dollars --
     
    •  United States: $1,249,000
    •  Mexico: 561,000
    •  Germany: 955,000
    •  U.K.: 1,030,000
    •  South Africa: 538,000
    •  Japan: 457,000
    •  South Korea: 394,000
    •  India: 123,000

(This study sampled software services companies of comparative size and maturity.)
(Average sales of 150 Mil $.)

  • Today’s top IT and BPO Chief Executives earn more than 25 times as much as Prime Minister Manmohan Singh. 
  • In the past five years, average salaries in general have increased by 36%. For CEOs, it is 340%.
  • Aged to Perfection? BPO Companies most open to having young CEO’s. Most others seek Older Leaders
  • A Redileon study reveals that CEO Job Security is significantly higher in India than the West
  • The Indian equity markets are relatively less impacted by the CEO turnover than its western cousins…CEO’s are not as sung here
  • The Global CEO: 60 % of CEO’s of technology firms in India have had international postings for a period of over 1 year. While only 12 % of their Industry counterparts have had international experience. The figure for the CEO’s in the BPO space is 80%.