Does CEO mean Chief Earning Officer?

Executive pay in the emerging economies in Asia, including India, is expected to match if not exceed those of counterparts in Europe and the United States by 2013, according to a report by Mercer Consulting. Mercer’s Executive Remuneration Perspective also reveals pay at the top is rising disproportionately to performance.

The distinction of being India’s highest-paid honcho goes to Naveen Jindal, executive vice-chairman and managing director, Jindal Steel & Power Ltd, whose pay packet is nearly Rs70 crore or Rs5.7 crore a month. But that’s one-seventh of what the highest paid American chief executive — Phillippe P Dauman of Viacom Inc — gets: Rs 376 crore a year. Broken down, that’s over Rs30 crore a month.

Aon Hewitt, a talent research and advisory firm, suggests the salary gap between Asia and the West is closing fast even at current levels. Anandorup Ghose, head executive compensation and governance, Aon Hewitt, said the median salary of an Indian CEO ranges between Rs5.5-6 crore, whereas it’s closer to Rs 35 crore in the US.

“If purchasing power is adjusted, the difference is less than 25%. However, there are many Indian CEOs who pocket equal or more when compared to the US  standards,” said Ghose.