CEO means Chief Executive Officer a higher authority in any Organisation. This article has detailed information about CEO salary in India.
In many cases, they are the sole owners of the company as they are elected by the Board of Directors.
The main task is to operate a list of operations, such as scheduling meetings with the Board of directors, how to gain profit in business, managing the company’s organizational structure, and communicating with other Board delegates.
HOW TO BECOME A CEO?
- Candidates who are aspiring to become a CEO, need to be a graduate either in Business or Economics or a Post Graduate-MBA in Business Administration, marketing or accounting, or business analytics to grow up in your career.
- Candidates aspiring to work need to gan leadership, and good communication skills.
They should understand companies' laws, analytics, and the working of the company under a large organization.
- They should have worked with senior management and executive levels in small and medium-based companies to gain experience.
After gaining 10-15 years of work experience in any industry of expertise, one can apply or become a CEO of any established firm in India. - The main CEO's responsibility is to set a target and achieve targets for the company’s advancement by active collaboration with company executives to achieve positive results.
CEO salary IN INDIA
Salaries of CEO in India differs at various levels such as :
- An entry level candidate with less than one year of experience can earn INR 30,000 per month with tips and bonus that is approximately INR 3.35 lakhs per annum.
- A CEO with 1-4 yrs of experience can earn up to INR 10 lakhs based on 100 salaries.
- A CEO with 5-9 yrs of experience can earn INR 12 lakhs per annum, whereas an experienced officer with more than 10 yrs of experience can earn up to INR 30 lakhs per annum.
- Salaries are based on popular skills such as business planning, team building, budget management, Human resources, performance, production management, and budgeting.
- CEO who works in top metropolitan cities such as Mumbai, Delhi, and Bengaluru gets an average of 68% more than the other CEOs working in other cities.
SKILLS
A CEO needs to possess good communication skills, strategic thinking, strategic planning, leadership skills, community services, analytical, logic, and be a financial advisor to take hold of all financial statistics.
ROLES AND RESPONSIBILITIES
The CEO is liable for leading, developing, and executing the long-term goals for increasing the value of shareholder value in the competitive market.
The jobs and responsibilities of a CEO differ for the different organizations depending on their structure and size, whether it’s a smaller or bigger organization.
CEO’s role can also differ and increase depending on company size and high corporate strategy, which are delegated through managers and departments. A few of the responsibilities and job descriptions of a CEO include-
- To communicate on behalf of the company with shareholders, government, and state organizations.
- To lead for company’s long and short-term goals for business development.
- Create and implement Organisation's vision and its mission.
- To evaluate the work of other members who are executive leaders, financial officers, directors, board of directors and presidents, etc.
- Maintain an awareness of competitive market outlook, expanding opportunities and for industrial growth, etc.
- Monitoring the company risks and setting strategic goals that can be measured and described.
- The company should maintain high social responsibility in business.
DIFFERENCE BETWEEN CEO AND COB
CEO | COB |
|---|---|
CEO is the top operational decision-maker of the company | COB protects the interest of the company’s investors. |
CEO takes the role of technical support | Technical superior head of the company and can become an ultimate boss. |
CEO is a part of the board meeting | Most Board chairpersons are not involved in business operations. |
CEO directs operational aspects of the company | COB and the Board of directors looks at the whole aspect. |
The CEO's decision can be challenged by the Board of Directors | COB does not have the power to overrule the CEO's decision, whereas the Board of directors can overrule its decision. |
CEO act as an advisory member of the committee | COB a peer member among the group. |
There are fewer reasons, when some conflicts may arise between the CEO and chairperson of the Board sue to:-
- Board of directors when votes to increase the pay of CEO if the latter is a part of chairperson conflicts may arise among the members, that would be voting on his compensation, so it is a loss for him.
- Board of directors evaluates the performance of executives, when the CEO holds the position of Chairperson, they then exercise the power of his performance is satisfactory.
DIFFERENCE BETWEEN CEO AND CFO
- The CFO is the Chief Financial Officer of a company, that can help to manage general operations on financial issues.
He tries to detect major financial strengths and tries to give solutions and suggestions to improve the same.
- CFO keeps track of the major cash flow and creates an account ledger that can help to plan and deal with financial matters such as payroll, investments, company’s capital structures, etc.
- CEO and CFO both of them deliver the profit to respective Board of Directors shareholders to protect the margin that is the main need for financial growth in the company revenue.
DIFFERENCE BETWEEN CEO AND COO
- COO is the Chief Operating Officer, who is ranked among second highest after the designation of CEO.
- COO can look after the major core and responsibilities as led by the CEO, to complete the pending task in his absence with his prior permission.
- COO act as the head of the Human Resource department and takes over responsibilities that come under various section such as recruitment, legal, payroll, training the employees, and handling various other administrative duties.
THE IMPACT OF A CEO CHANGE
- When there is a CEO transition, sometimes the market can have a positive or a negative impact, due to a change in company leadership.
A study reveals that 45% of the company’s performance is reflected by the CEO’s structural plan and strategy that is implemented for the company’s growth. - When a new CEO is appointed to the company, the prices and production costs might fluctuate due to a large number of factors such as negligence in planning, stock pricing, and market perception of the new CEO.
- Sometimes investors and the Board of Directors are more lenient with the new CEO’s strategy and give him a challenging strategy to overcome the same.
They might track his overall record and shareholder value growth in the market.
A CEO’s reputation can be reflected in various areas such as the ability to grow market share, reduce costs, and expand the production in the new market.
BASIC CORPORATE STRUCTURE OF A COMPANY
- The basic corporate structure of the company has to be prepared after looking at the interest of the company shareholders.
- Many companies adopt a two-tier chain, where the first tier would be the board of directors and the second tier would be the company's upper management team members such as the CEO, COO, and CFO.
- The supreme governing authority of the company is the Board of Directors who hold a major share in the company.
This Board of Directors selects the Chairperson and CEO of the company.
CEO, thus with the recommendation of the board of directors appoints COO-chief Operating Officer and CFO-chief financing Officer.
CONCLUSION
A CEO is the highest-ranking position in any company and now from the above information , I hope you have the clear idea about the CEO salary and how he has to make major corporate decisions, manage overall resources, make necessary corporate and financial decisions related to the company
And act as a liaison between the Board of directors and the corporate operations. CEO is answerable to Chairman, the most senior-most member or trustees.
He should be the right candidate, who must have the ability to build and model the culture, be an inspired model for its executive members, and set a bond of relationship between the Board of members and their working strategies.
Frequently Asked Questions
1. What is the average CEO salary in India?
An average CEO salary for the post of managing director in India is approximately INR 40 lakhs-INR3.3 lakhs per month as per the qualification and experience possessed by an individual.
2. Who is the No 1 CEO in India?
Some of the top and privileged CEOs in India, who are ranked in the top 1 is Mr. Mukesh Ambani who is one of the top 10 CEO in India.
3. What is a CEO qualification?
An aspirant should be a graduate in Business or Economics and a post-graduate in MBA-Master of Business Administration with relevant certifications that are required for CEO and also gain some work experience in order to become a CEO.
4. Which CEO got the highest salary in India?
Mr. Parek is the highest paid IT CEO in India, while TCS CEO Rajesh Gopinath gets INR 25.76 crores, Wipro’s Paris-based Ceo has pay of INR 64.34 crores, HCl Tech gets INR 32.22 crores and Tech Mahindra CEO earns INR 22 crores .