Performance pay helped top India Inc executives get hikes in 2013
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Faced with one of the roughest years for global economy, top India Inc executives appear to have weathered the storm in 2013 as performance-linked pay helped them get salary hikes of 10-22 per cent.
According to experts, sluggish economic trends did not have much impact on executive remuneration packages and 35-40 per cent of corporate leaders also managed to secure their bonus payments linked to individual and company performances.
This assumes significance in the backdrop of top executives being affronted with tremendous pressure to maintain profit margins, control costs, retain talent and manage business sentiments.
The HR consultants say the performance of company executives in India has in fact turned out to be above average and better than those in developed countries.
HR consultancy Unison International's Managing Director Udit Mittal said "the performance of many executives has been better this year compared to last year and despite the global slowdown, overall performance has been above average".
"India has been a self-sustainable economy and in other countries due to global market sentiment, performance has been comparatively bad," he said.
Echoing the view, HR services firm Randstad India's CEO Moorthy K Uppaluri said, "Corporate India CEOs, were lucky compared to their Western counterparts as India was still a growth market, though the rate of growth was modest".
"On the other hand, senior executives in developed countries, particularly Europe were faced with a stagnant growth prospects, financially constrained governments and diminishing returns," he added.
In terms of remuneration, top executives pay is estimated to have increased by 8-10 per cent on an average in 2013, while senior executives got a hike of 20-22 per cent.
As per executive search firm MANCER Consulting, there was a rise of 15-20 per cent in compensation levels for executives in 2013.
"There is positive increment expected in financial year 2014-15 as well, as senior executive salaries is inching towards their foreign counterparts slowly," MANCER Consulting CEO Satya D Sinha said.