India’s Chief Human Resources Officers (CHROs) have witnessed a notable pay hike over the past year, with compensation rising between 7% and 11%, according to the Deloitte India Executive Performance and Rewards Survey 2025. The survey highlights a broader trend of rising executive pay amid increasing performance pressures and evolving corporate governance dynamics.
While the focus is often on CEOs, the data reveals a similar upward trajectory for other CXO roles, including CHROs, CFOs, COOs, CMOs, and CSOs. Approximately 60% of total CXO compensation is fixed, while the rest is split equally between short-term and long-term incentives. For CHROs, this signals a growing expectation to deliver both immediate and sustained organisational outcomes, especially in areas such as talent strategy, leadership development, and culture transformation.
The compensation landscape is still led by CEOs, with median professional CEO pay now standing at INR 10 crore—up 13% from last year. Interestingly, only 40% of CEO pay is fixed, while the remaining 60% is at risk, comprising 25% in short-term bonuses and 35% in long-term incentives. COOs and CFOs continue to be the next-highest earners, with packages approaching INR 4 crore annually.
“CXO compensation continues to rise in India with this talent pool remaining restricted and consequently in high demand,” said Anandorup Ghose, Partner, Deloitte India. He also noted that despite volatility in equity markets, there’s been no observable negative impact on compensation—yet. However, he expects the ripple effects may be reflected in next year’s figures, given the strong correlation between executive pay and equity performance.
Beyond salary increments, the report points to a shift in performance evaluation metrics. While long-term incentives are largely driven by financial outcomes, short-term incentives are increasingly tied to a mix of strategic and functional KPIs. Scorecards used to assess CXO performance are becoming more sophisticated, focusing not only on financial performance but also on broader strategic impact.
Deloitte’s survey also identifies a rise in shareholder activism and scrutiny over executive compensation, particularly around share-based plans. Companies are now more frequently offering stock-based long-term incentives, but these are being vetted more rigorously by shareholders and proxy advisory firms. Shareholder rejection of compensation proposals has increased fourfold in the past year.
Dinkar Pawan, Director, Deloitte India, commented on this trend, saying, “Share-based pay is becoming more intricate with the rising use of performance shares and multiple plans. New proposals are being put under the microscope to ensure that the interest of all stakeholders is protected.”
With CEO and CXO tenures shortening and performance expectations intensifying, the study notes increased negotiation around executive contracts and benefits. This, combined with governance pressure and rising shareholder activism, is putting upward pressure on executive compensation across functions—including HR.
As CHROs continue to take centre stage in shaping talent strategies amid evolving workplace demands, the compensation increase reflects their rising importance in boardroom priorities.
