India’s high corporations have greater than doubled the charges paid to impartial administrators over the previous 5 years, a brand new examine exhibits, as companies search to spice up governance and appeal to international expertise.
A report by consulting agency Deloitte India discovered that the common compensation for impartial administrators at Nifty 50 corporations almost doubled from ₹52 lakh in FY20 to ₹1 crore in FY25. The findings, a part of Deloitte’s ‘Nifty 50 Impartial Director Remuneration Examine – 2025 Version,’ exclude banks and insurance coverage companies, which function underneath separate compensation tips from the banking and insurance coverage regulators.
The findings of the examine had been shared completely with Mint.
“The rise has been primarily pushed by a robust revenue development of Nifty 50 corporations over a five-year interval, resulting in greater fee payouts,” mentioned Dinkar Pawan, director, Deloitte India. Administrators are additionally incomes extra from greater sitting charges and a higher variety of conferences, mentioned Pawan, who additionally leads Deloitte’s govt efficiency and rewards follow.
Impartial administrators now make up a good portion of those boards, with their illustration starting from almost 40% to over 50% within the final fiscal 12 months.
CEO pay
Over the identical interval, common CEO pay in the identical corporations rose roughly 50%. Nonetheless, this comparability is just not strictly like-for-like, as CEOs earn considerably extra and observe a distinct remuneration construction. Compensation can be decided by the demand and provide of expert professionals.
The pattern in director pay stands out in opposition to a backdrop of fluctuating compensation insurance policies throughout India Inc. Following the pandemic, corporations provided excessive pay to gasoline digital enlargement, however as international uncertainty grew and funding dried up, hiring slowed and wage will increase had been scaled again.
The rising pay for administrators comes with heightened scrutiny. Shriram Subramanian, founding father of Bengaluru-based company governance agency InGovern Analysis Companies, notes that buyers are watching carefully to see if director efficiency and time dedication have elevated alongside their compensation. “The tasks of committee members have elevated,” he mentioned.
Driving demand
Laws mandate all listed corporations to have a minimum of a 3rd of their board members as impartial administrators, a requirement that drives demand for certified people.
Government search companies affirm the rising demand for and worth of those roles. Puneet Kalra, managing director at Russell Reynolds Associates, mentioned demand for impartial administrators has doubled within the final two to 3 years.
“This want goes up for a lot of causes, however principally both to handle the rising realization of stopping governance points or as a result of household companies and households are increasing and want nearly a bridge between relations and working administration, performing nearly as good counsel at occasions and arbitrators at others,” mentioned Kalra, who additionally advises on boards and CEOs for the search agency.
He mentioned when an organization agency desires a director who can be on international boards, they’re left with little possibility however to come back near the remuneration requirements of US (sometimes $250,000).
Korn Ferry India chairman and managing director (MD) Navnit Singh pointed to a different: “Corporations have began permitting their CXOs to take up board positions in a agency that’s non-competitive with them.”
Amongst impartial administrators, girls have seen a quicker rise in pay. Their compensation at Nifty 50 corporations in FY25 is roughly 2.1 occasions their FY20 ranges, in comparison with a 1.9 occasions enhance for his or her male counterparts. Deloitte’s Pawan famous this is because of a mixture of extra tasks and higher illustration on boards.
