Senior executives could receive 8.9% pay rise in 2022; Maximum in 5 years: Aon

In India, the salaries of senior executives have increased by 8.9 per cent this year from 7.9 per cent in 2021. Risk pay – the sum of variable pay and total compensation from long-term incentives (LTIs) – stands at about 60 percent for CEOs, according to a recent survey conducted by Aon, including the chief operating officer, chief financial officer, chief sales officer and chief human resources officer. C-level executives follow close to 50 percent.

Aon plc, a leading global professional services organization, today released insights from its 2022 Executive Rewards Survey in India. The study, the largest and most comprehensive of its kind in India, analyzed data across 475 companies from more than 20 industries.

Commenting on the same, Nitin Sethi, Partner and CEO, India for Human Capital Solutions, said, “Over the past few decades, a large percentage of India Inc. has been leaning towards outside talent rather than building from within. However, in the wake of the COVID-19 epidemic, there is a shortage of talent, and the cost of attracting, retaining, and engaging leadership talents that grow businesses is growing rapidly. Not only is average executive compensation growth the highest in five years, but variable pay and equity grants have also increased because companies cannot risk losing key talent at the senior level because it affects business performance delivery. “

The annual long-term incentive for CEOs is 125 percent of the average salary. Most companies use a mix of performance and retention-based grants, with at least 50 percent of the grant amount associated with performance measures such as shareholder returns, profits, revenue and cash flow.

Pritish Gandhi, India’s director of practice and practice leader for compensation and governance at Aon, said: Noting such as total target ownership, which is LTI Quantum as a percentage of equity and the potential for wealth creation, LTI Quantum percentage to target the desired asset creation in practice when determining LTI grants to effectively compete. You need more than luck to succeed in affiliate business. “

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