In five years, independent directors’ fees have doubled. This is how.

A report made by the consulting firm Deloitte India found that the average compensation for independent directors in Nifty 50 has increased almost twice. La52 Lakh in FY20 La1 Crore in FY25. Deloitte’s’ Nifty 50 Independent Director Fee Study – 2025 Editions, which are part of the Banking and insurance regulators, except banking and insurance companies operating under compensation guidelines.

The findings of the study were shared only with Mint.

“The increase was primarily due to a strong profit growth of Nifty 50 companies for a five -year period, and led to higher commission payments,” Deloitte India Director Dinkar Pawan said. He said. Managing Deloitte’s executive performance and award applications, Pawan said that directors earn more than higher seating fees and more meetings.

Independent directors now constitute a significant portion of these boards, and their representations vary over approximately 40% to 50% in the last financial year.

CEO PAY

In the same period, the average CEO payment in the same companies increased by about 50%. However, this comparison is certainly not similar because CEOs have gained significantly more and follow a different wage structure. Compensation is also determined by the demand and supply of talented professionals.

The tendency at the Director Pay, followed by Pandemi, Following the Indian Inc., the compensation policies fluctuated came to the forefront against a basis, companies offered high fees to digital expansion, but as global uncertainty grows and financing, leasing and salary increases withdrew.

The increasing fee for managers comes with increasing examination. Shriram Subramanian, the founder of Ingovern Research Services, the Bengaluru -based corporate management company, says that they closely watch to see if investors’ performance and time commitment has increased with compensation. “The responsibilities of the committee members have increased,” he said.

Request request

The regulations require all companies listed as independent directors to at least one third of the members of the board;

Executive search companies confirm the increasing demand and value of these roles. Russell Reynolds Associate General Manager Puneet Kalra said that the demand for independent directors has doubled in the last two to three years.

“This need is increasing for many reasons, but mostly, to take over the increasing realization of governance problems, or to act as a bridge between family businesses and their families and almost a bridge between family members and business management, from time to time as good consultancy and others act as referees,” he said.

When a company company also wants a director in the global boards, they said that they leave very few options to approach the US wage standards (usually $ 250,000).

Korn Ferry India President and General Manager (MD) Navnit Singh drew attention to another: “Companies began to allow CXOs to take their positions in a company that cannot compete.”

Among the independent directors, women saw a faster increase in wages. Compensation for Nifty 50 companies in FY25 is approximately 2.1 times the FY20 levels compared to an increase of 1.9 times for male colleagues. Deloitte’s Pawan said that this is due to more responsibility and more representation combination of the boards.