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Pawan Munjal, chairman and managing director of Hero MotoCorp — India’s largest twowheeler manufacturer — remained the highestpaid executive in the automotive sector in FY25. His total remuneration for FY25 stood unchanged at Rs 109.41 crore, the same as in FY24. However, there were adjustments within the components of his pay — basic salary, perquisites, allowances, and retirals saw a decline — which was offset by an increase in commission payout.

Though there was no increase in Munjal’s salary, the maker of Splendor and Karizma bikes clocked a 16% rise in profits and nearly 9% growth in revenues during the same year.

CEO compensation trends

A distant second on the list was Jayadev Galla, chairman, managing director, and CEO of Amara Raja Energy and Mobility — makers of automotive batteries. The 59yearold industrialist from Andhra Pradesh took home ₹67.29 crore in total remuneration in FY25, marking a 6% increase over FY24.

Galla’s remuneration package continued to reflect the widest pay gap in the industry among peers, standing at 2,232 times the median salary of his company’s employees. The median employee salary at the company rose by 2.44% in FY25.

At Bajaj Auto, managing director Rajiv Bajaj received a 9% hike in salary in FY25 compared to FY24 — mirroring the company’s 9% increase in profits during the year. His total remuneration rose to Rs 58.58 crore in FY25. Bajaj is currently seeking shareholder approval for his reappointment for a fiveyear term starting April 1, 2025.

For the first time, Anish Shah, Group CEO and managing director of the Mahindra Group, entered the list of the top five highestpaid executives in India’s automotive sector. In FY25, the M&M board awarded him a 95% hike in remuneration, taking his total pay to Rs 47.33 crore. Under Shah’s leadership, Mahindra & Mahindra rose from fourth to second place in the passenger vehicle rankings, driven by the strong performance of models like the Scorpio, Thar, and XUV3XO.

Exportdependent tyre maker Balkrishna Industries chairman and managing director Arvind Poddar saw a 12% increase in pay during FY25, putting him slightly ahead of Shah at Rs 47.54 crore. His son Rajiv Poddar, who is the joint managing director, took home Rs 46.42 crore remuneration, a rise of 13%.

But not every CEO got a raise last year. Neeraj Kanwar, vice chairman and managing director of Apollo Tyres saw his pay go down by 40% in FY25 to Rs 40 crore. The decrease was primarily due to lower commission visàvis last year owing to lower profits in FY25 and is based on the limit set by the shareholders, the company clarified.

Pay cuts

But not every CEO received a raise last year. Neeraj Kanwar, vicechairman and managing director of Apollo Tyres, saw his remuneration fall by 40% in FY25 to `40 crore. The decline was primarily due to a lower commission payout, linked to the company’s reduced profits during the year. The company clarified that the commission is determined based on shareholderapproved limits.

The average annual pay of CEOs in India has reached $2 million (Rs 17.2 crore), according to the latest study by research and advocacy group Oxfam. The report further noted that, globally, average CEO pay has surged by 50% in real terms since 2019, while average worker wages have risen by less than 1% over the same period.