Deloitte India Executive Performance and Rewards Survey Report 2025
Key insights | 2024–25
The sixth edition of the Deloitte India Executive Performance and Rewards Survey was launched in September 2024. Designed as a comprehensive India-specific B2B survey, this edition drew participation from over 400 leading organisations across industries — with public sector companies excluded from the scope.
This annual study offers in-depth insights into the evolving landscape of executive pay in India, with a strong emphasis on linking performance with rewards. The findings help organisations benchmark their executive compensation strategies and align them with market trends, governance expectations, and business goals.
Key highlights from the survey:
India Inc. is adopting a more rigorous approach to performance-linked pay. Short-Term Incentives (STI) are increasingly tied to holistic business and functional outcomes, beyond just financial metrics. Performance thresholds are becoming more stringent. India Inc. is now paying lesser bonuses to CXOs for missing financial and strategic targets compared with the year before.
Stock-based long-term incentives (LTIs) are gaining ground, with growth in the adoption of performance shares and multiple plans. The increase in the quantum of pay linked to stock awards is also leading to a consistent increase in the cost incurred by companies on these plans (as a proportion of total employee cost).
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Evolving executive incentive structures
The survey highlights a growing shift in how organisations evaluate CXO performance, particularly in the context of short-term incentives. Companies are moving beyond purely financial metrics, adopting holistic performance assessments that incorporate broader functional and business goals. In contrast, long-term incentives continue to be predominantly driven by financial performance.
Most companies continue to use a scorecard approach while assessing CEO and CXO performances comprising financial and strategic priorities. To ensure progress, particularly with respect to strategic targets, organisations are increasing the emphasis on performance on such lead metrics while determining short-term annual bonus payments.
Now more companies are not only offering stock-based rewards but also the quantum of pay linked to stock awards and the cost incurred by companies on these plans is rising. However, with this growth comes increased scrutiny and governance. Proxy advisory firms are playing a stronger role in challenging new LTI plan proposals and influencing voting outcomes. Shareholder rejection rates have gone up four times the past one year alone.
