CEO or the Chief Executive Officer is a top designation in the executive hierarchy of a company and is responsible for its success and growth. These professionals have years of experience and are highly qualified to handle the significant post that they are in charge of. Becoming a CEO needs expertise and experience.
In this post, we will delve into the salaries of CEOs in India in different industries and the factors that affect their salaries. Also, we will discuss the pivotal roles that they perform in the role of a chief executive officer. Read on to know more.
Who is a CEO? What Role Does a CEO Perform?
The Chief Executive Officer (CEO) is the senior most position in an organization holding the pivotal powers to make decisions for the company they work with. They perform several responsibilities including setting short and long-term goals for the growth of the company, strategy implementation, and structuring the reporting and managerial strata of the company, among others.
A CEO can determine the success and failure of a company or business through their decisions and process management. They also act as the point of communication between the board of directors of a company and the business operations departments. They lead a company, shape its goals, and ensure that the goals of the organization are met.
What Factors Determine the Salary of CEOs in India?
CEOs' salaries in India vary based on many factors. Some of them include the size of the organization, its type, industry, experience, and qualifications of the CEO among others. The salary of CEOs may differ depending on all or some of the above factors. However, irrespective of the differences, CEOs in India earn good salaries because of the critical roles they perform in an organization. The range of salary for CEOs in India might vary from lakhs to crores depending on the organization and its size. MNCs or other large organizations pay more salaries to CEOs compared to small companies. Further, along with the base salary, CEOs also receive bonuses and incentives that enhance their salaries.
The Below Factors Determine the Salaries of CEOs in India:
1. Industry: In the cut-throat competition of the present time, the remuneration paid to a CEO is greatly determined by the competition within an industry. Some intensely competitive sectors like finance, healthcare, and technology offer competitive remunerations to deserving CEOs to retain them with their organization.
2. Company Size and Region/Location: The size of the organization as well as region also determines the pay package of CEOs. Huge conglomerates and MNCs offer higher compensations to CEOs who are pivotal for the growth of the company.
3. Experience of the Candidate: The years of experience added to the resume of a CEO boosts their salary greatly. The more experience they gain, the better the salary they are paid in different industries.
4. Qualification of the Candidate: The educational qualifications of a CEO or how qualified the candidate is, determines the salary significantly. Besides, a CEO’s excellence in terms of the skills and expertise portrayed while pursuing different roles and responsibilities of their job also determines their salary.
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What is the salary of CEOs in Different Industries in India?
1. Salary of CEO in the Financial Sector
Chief Executive Officer salary in India in the Financial Services Industry ranges between Rs 12 lakhs to Rs 150 lakhs with an average annual salary of Rs 54.9 lakhs per annum.
2. Salary of CEO in the Healthcare Sector
Chief Executive Officer salary in India in the Healthcare Industry ranges between Rs 15.1 lakhs to Rs 94 lakhs with an average annual salary of Rs 50 lakhs per annum.
3. Salary of CEO in the Telecom Sector
Chief Executive Officer salary in India in the Telecom Sector ranges between Rs 12 lakhs to Rs 101 lakhs with an average annual salary of Rs 40 lakhs per annum.
4. Salary of CEO in the Automobile Sector
Chief Executive Officer salary in India in the Automobile Industry ranges between Rs 12.5 lakhs to Rs 106 lakhs with an average annual salary of Rs 36.6 lakhs per annum.
5. Salary of CEO in the Edtech Sector
Chief Executive Officer salary in India in the Edtech Industry ranges between Rs 13.9 lakhs to Rs 104.5 lakhs with an average annual salary of Rs 34 lakhs per annum.
6. Salary of CEO in the Retail Sector
Chief Executive Officer salary in India in the Retail Industry ranges between Rs 19 lakhs to Rs 101 lakhs with an average annual salary of Rs 50 lakhs per annum.
7. Salary of CEO in the Engineering Industry
Chief Executive Officer salary in India in the Engineering Sector ranges between Rs 12 lakhs to Rs 150 lakhs with an average annual salary of Rs 51 lakhs per annum.
8. Salary of CEO in Software Products Sector
Chief Executive Officer salary in India in the Software Products Industry ranges between Rs 10 lakhs to Rs 96.1 lakhs with an average annual salary of Rs 38.3 lakhs per annum.
What are the Educational Qualifications of CEOs?
There is no specific course to become a CEO nor is there any particular degree required for the post of a CEO. Depending on the domain or industry, companies may specify the educational qualifications of CEOs. However, aspirants looking forward to reaching the position of CEO should acquire degrees and skills to be eligible for the post.
To start with, a bachelor’s degree or equivalent is necessary in a relevant discipline. Furthermore, candidates can pursue a two-year master’s degree before seeking jobs. They can also pursue further studies like certifications, PhD, etc. Besides education, relevant experience is also important to reach the ladder of becoming a CEO. In addition, good communication, decision-making, risk analysis, time management, critical thinking, and various other skills also aid aspiring CEOs in achieving their goals.
Conclusion
As discussed above, the salaries of CEOs differ depending on varied factors like experience, company size, industry, and qualifications. Regardless of the differences, CEOs in India earn high salaries because of their critical role in a company's growth and success. CEOs serve pivotal roles and deserve to be paid fairly for their work. To qualify for the post of CEO in an organization, you need to have the required qualifications and work hard to ascend to that level. You also need to acquire years of experience in your field to handle such a responsible position efficiently. To start with, candidates must complete their bachelor’s degree first followed by post graduation and further studies.
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