Variable pay is no longer enough: Here’s what India’s executive leaders want to stay

The corner office may come with a bigger cheque, but that alone is no longer enough to keep India’s top executives in their seats. As companies create bigger mandates, GCCs take on global roles and leadership opportunities multiply, senior professionals are becoming more selective about what they want in return, from performance-linked pay and better benefits to faster career progression and work that gives them greater impact.

The Executive Compensation & Talent Trends Report 2026 – India by Page Executive India, part of Michael Page India, based on insights from more than 1,200 C-level executives and senior leaders, captures this tension. While 65% of executives say they are satisfied with their current compensation, 87% cite compensation as a key driver of job satisfaction. Yet 94% are open to new opportunities and 41% do not expect to stay in their current role for more than a year.

Variable Pay Becomes the New Normal

The biggest change is happening in the structure of executive rewards. 88% of C-level executives and senior leaders in India receive variable compensation, compared with 85% across the rest of APAC.

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The size of the variable component also varies considerably. For 42% of executives, variable compensation makes up less than 21% of total compensation. For 23%, it accounts for 21–30%, while 10% receive 31–40%, 7% receive 41–50% and 6% receive more than 51%.

Variable pay is increasingly being used to connect leadership rewards with business performance. Profitability is the biggest factor influencing variable compensation, at 52%, followed by revenue growth at 51%. Operating margin accounts for 29%, while market-share growth and long-term growth targets account for 26% and 25%, respectively. People and broader business outcomes also feature, with return on investment influencing variable pay for 24% of organisations, while cash flow and employee engagement or talent retention each account for 22%.

But Money Isn't the Whole Retention Story

Yet higher or performance-linked pay does not appear to be enough to keep executives in place. India’s leadership market is becoming more mobile. 34% of executives cite wanting a promotion as a reason for looking for a new role, while 59% want to work on higher-profile projects over the next 12 months.

Jon Goldstein, Managing Partner, Page Executive India, sees the expansion of executive opportunities as a key part of this change. “India is not only creating more domestic leadership positions, but increasingly growing globally from India,” Goldstein tells Business Today.

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The transformation of GCCs is a case in point, with India increasingly becoming home to global functions and product ownership, creating opportunities for executives to operate at much greater scale.

Goldstein says Page is also seeing something that was unusual historically: Indians wanting to return to the country to build their careers.

“The reason many are now looking to return isn't simply because their parents are getting older,” he says. “There are bigger and more globally significant jobs available in India.”

Benefits Need to Work Harder

As variable pay becomes more widespread, the benefits package is emerging as another important lever for executive talent.

Private health insurance for executives and their families is the most valued benefit, cited by 53%, compared with 44% of organisations offering it. Company cars or car allowances are valued by 32%, against 19% offering them.
There are also benefits companies may be overestimating. Employee share ownership or corporate savings schemes are offered by 26% of organisations but valued by only 12% of executives. Stock options or equity awards outside LTIPs are offered by 30%, but valued by just 15%.

More benefits do not necessarily mean more value. Companies need to understand what their leadership talent actually wants.

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Flexibility is another gap. 38% of executives in India receive fixed benefits, while 22% have some flexibility and 25% have total flexibility. India offers less flexibility in benefits than APAC overall, according to the report.

Compensation remains critical, but it is increasingly part of a broader executive proposition. With 72% of senior leaders viewing compensation structures as transparent, the differentiator is how clearly leaders can see the link between performance and reward, as well as a credible path to their next role.

For India Inc, that means the retention strategy cannot stop at a bigger cheque.