While US CXO salaries have increased by 15% between 2020 and 2024, Indian counterparts have seen an increase of nearly 40% over the same period, according to data from recruiting firms.
While the gap between executive compensation is huge in absolute terms, when adjusted for purchasing power parity (PPP) and factors such as cost of living and inflation, the gap has narrowed, experts said.
Large companies have outsourced functional processes like supply chain, financial analysis, human resources and payroll to India due to quality of staff, cost control, process focus and other reasons now, but US managers have always had preference. That is changing as responsibility is shared more in the “2 in a box” model of collaborative management, says R Suresh, CEO of search firm Insist Consulting.
The head of a GCC in India might get $1-1.5 million at the top, while a CXO in a US multinational might get paid $800,000-1 million at a $2-5 billion company.
“CXOs in India often command salaries of Rs 3-4 crore ($350,000-450,000). We have three-four mandates running in Bengaluru where salary is not a factor,” says Suresh. “At the CEO-2 level, where the designation is lower, but the individual often reports directly to the CEO, salaries can be up to Rs 2.5-3 million.”
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ETtechCEO-1 refers to CXOs in a company. CEO-2 refers to roles that report to CXOs.
Compensation in the US is now heavily indexed to equities, and the GCC is no exception. Indian employees in these GCCs also get shares in global companies, Suresh added.
According to a study by Deloitte, average CEO compensation in India this year stood at Rs 13.8 crore, up 40% from the pre-Covid period. The number of CEOs earning more than Rs 20 crore in target total compensation has doubled in the last four years.
As Indian GCCs transform themselves from cost centers to revenue centers, the gap for CXO-1 roles such as vice president (VP), senior vice president (SVP) and business managers is also closing faster, experts said.
India is no longer just home to back offices and while companies here are seeing cost arbitrage at entry and mid-level, they are not doing so for top roles,” said K Sudarshan, managing director of search firm EMA Partners India.
“Now major jobs are being moved out of the US. For example, we’re doing a CIO search for a US company that’s moving the entire function to India,” he said. “The compensation for the role is comparable to the US. In a few cases, even at the CXO level, taking into account shares, the compensation can go up to almost $1 million. For sub-feature leads, salaries can be Rs 1.4-2 crore plus shares.”
A CEO in the US earns $1-3 million annually compared to Rs 3-10 million ($350,000-1.2 million) in India, said Navneet Singh, founder and CEO of Avsar.
“However, an Indian CEO earning Rs 5 crore ($590,000) enjoys a standard of living that is in many cases equal to or better than a US-based CEO earning $1 million,” he said.
“For example, while a VP in the US might earn $250,000–500,000 annually, a VP in India can now earn INR 1–2 crore per year ($117,800 to $235,500), with additional benefits significantly enhancing their overall compensation,” said Singh. “This trend is particularly evident in industries such as IT services, fintech and pharmaceuticals.”
India leads global wage growth, with a forecast increase of 9.3% by 2024, driven by technology demand as well as skill shortages in AI, cloud and cybersecurity, said Neeti Sharma, CEO, TeamLease Digital. India’s smaller pool of experienced CXO talent, combined with its cost efficiency, a young workforce and booming sectors such as technology and renewable energy, have led to stronger salary increases, she said.
“In the US, CXO salaries are significantly higher,” says Anshul Lodha, managing director of Michael Page India. “However, we observe that the pay gap (taking PPP into account) has decreased in recent years due to the growth of start-ups, ease of doing business, tax benefits. We can see a similar trend for CXO-1 roles as well, including VP, SVP , business executives, etc. where professionals insist on stock options in addition to a decent base salary, to have a potential return on investment.”
To be sure, with a higher market capitalization, wealth creation opportunities for CXOs are greater in the US.
“We expect to see the gap narrow over the next decade with factors such as technological advances, India’s young and English-speaking working population and the China+1 strategy,” Lodha said.
Although the pay gap remains wide between US and Indian executives, many are choosing to lead from India early in their careers, an opportunity that would make them truly global leaders, says Milind Shah, CEO of Randstad Digital India.
