Mounting salaries for CEOs, under-grads

By Priya Chatterjee

If earning hefty packages tops your list of an ideal job, then get ready to rock. The recent reports state that there has been a major break through in terms of salaries in the corporate industry. Lucrative jobs and high salary packages once reserved for the MBA's have taken a reverse route towards the fresh graduates.

Salary packages from Rs 8-20 lakh have been offered to some students of St Xavier's and HR College. This is not far behind IITians who were offered a package of Rs 26 lakh last year. The average salary for the college is Rs 7-7.5lakh.

The main reason behind this shift is not known but no one is complaining. The recruiters feel that the college students nowadays have better exposure and are open to more avenues. An MBA on the other hand has invested time and money and looks only for specialised profiles with handsome salary packages.

Not only this, the salaries of CEO seem to have hit a record average with 30% increase in the last one year. The average salary is Rs 2 crore per annum. (Read complete story) According to a study, among the top 87 Indian and MNC CEO's, 50% of them are now in the Rs 2 crore a year bracket and 12% in the Rs 7 crore category.

Trends also show an increase in the cross sector employability of the CEO's, which is one of the reasons behind this rising compensation. CEO's with broad based experience and exposure are offered premium packages. The average CEO's salary is 2.6 times than the entire executive population, in terms of total cost to company (CTC), excluding the long-term incentives.

The study included sectors like mining, oil and gas, chemicals, automotives, construction, consumer durables, FMCG, retail, telecom, transportation, and power/utilities. Technology companies were not part of the study.

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