The executive compensation across the markets in the word vary greatly, with Indian CEOs earning much less on a purchasing power parity basis than their global counterparts. This trend could soon be changing, said Alain Tanugi, global chairman, Transearch International to Mint in an interview. Transearch is one of the leading executive searching organisations of the world and Tanugi has been choosing executives for the Fortune 500 companies for four decades now.
Tanugi told in the interview that with demand far outstripping supply for executives in the Indian markets, the difference in compensation between India and the global peers will be reducing. Also more companies were preferring locals as executives rather than bringing in foreign nationals.
He said the companies are getting conscious of the cost, and even when the companies hire expats, it is done on local terms. The previous trends of huge perks accompanying the salary is gone.
With the Indian businesses beginning to grow "in tandem", the search will see huge growth in the country.
The only sector which could take some time to catch up would be the financial services sector, according to Tanugi.