New Delhi: According to a reports by global consultancy major Hay Group, top Indian executives including the CEOs are stated to get a hike of a modest 9 to 9.4% only, for this fiscal year. As per their Top Executives report, the growth figure has come down from the higher double digit growth figures as witnessed during the previous years. This report was inclusive of 158 organizations across various sectors including automobiles, chemicals, basic resources, oil and gas, FMCG, retail, constuction and materials, industrial goods, telecommunications, and utility goods.
Sridhar Ganesan, Rewards Practice Leader, Hay Group India said, "Hay Group research has found that markets, strategy, culture, and ambitions are the four real drivers of modern-day executive compensation. This is important to keep in mind as data analytics on executive compensation have to be interpreted beyond just the stated numbers". This means that the organization culture and set up affect the executive compensation package greatly.
To lay it all out simply, companies are generally compartmentalised into 4 departments; carers, contractors, cultivators, and fundamentalists. Taking this factor, Tata Group is the ideal carer, whose inclination towards social and organizational conciousness to create a stronger base for an organization. Hence, the CEO's pay will actually reflect the long term ideals. Compared to this companies like Jabong and Flipkart inculcate a very strong cultivator approach, whose payout norms are mostly leveraged.