Compensation gap between CEO & median employee widens in India Inc from pre-pandemic years, finds ET study

An ET study identified the widening gap in compensation between CEOs and median employees in 35 major Indian companies post-pandemic. Companies such as Hindustan Unilever, Infosys, and Tata Steel witnessed a significant increase in CEO to median pay ratios from 2019-20 to 2023-24 due to higher variable pay, bonuses, and ESOP-linked earnings, with ITC's ratio rising to 400:1 in FY24. Conversely, firms like Nestle and Bajaj Auto saw reductions. Modest median pay hikes and an abundance of low-cost entry-level resources impacted lower medians. Lateral hiring played a role in pay structures. Shriram Subramanian from InGovern attributes the trend to companies going global. Firms like Grasim Industries and HDFC Life Insurance also saw increases. Shareholders demand performance-linked CEO pay and fair wage practices.