>> Updated
2008
Finance professionals in India got the
highest pay hikes in all of Asia in 2007. Chief finance officers recorded the highest
growth of 25% in Asia; whereas other professionals such as finance
controllers, treasurers and finance executives saw their salaries
go up by 28%. The reason behind this fantastic hike is the demand
supply ratio. India is a fast growing market and the talent available
for the top jobs is limited. The overall rise in the salary levels
of finance & accounts professionals is also due to the large
scale recruitments of Chartered Accountants in the BPO’s
and KPO’s finance & accounts verticals .
Investment banks and consulting firms turned
out to be the biggest recruiters in IIIM’s this year. The
highest ever package of Rs 1.36 crore was given to one of the
students of IIM Kolkata by a leading international investment
bank. Companies such as Goldman Sachs, Morgan Stanley and AD
Little was present in IIM Kolkata. Students from IIM Calcutta
got offers from Morgan Stanley’s London office. Global
investment banks turned up in big numbers and students received
offers from Merrill Lynch, Credit Suisse, JP Morgan, Morgan Stanley,
Goldman Sachs, etc. In IIM Bangalore almost 21% of the students
opted for investment banks like Lehman brothers, Merrill Lynch
and Barclays Capital. Even smaller Indian finance companies such
as Anand Rathi Securities, Angels Securities and Agile Asset
Management offered packages of 20 to 30 lakhs per annum to IIM
graduates . Ahmedabad based micro finance firm SEWA has offered
the post of CEO for its agriculture division to a student of
I IM. The global package for the IIIMs have crossed 1.26 crores
and the average domestic pay package hovers around Rs 25 lakhs,
this year.
Indians working in MNCs here can expect
the highest pay rise in the year 2008 . Talent retention
, inflation and soaring corporate profits have been the key
reasons for the significant rise of 14 % on an average which
is the highest across the world.
The Financial Services sector including,
insurance, asset management, private equity ,investment banking
,commercial banking are the hottest sector in India today. Almost
all companies are in a hiring mode. The salary levels are in
general rising, corporates are keen not to lose talent and are
giving astronomical salary hikes up to 50-60% . The top professionals
are commanding top salaries now. It just not the CEOs but even
the business heads are regularly crossing the crore mark. Indian
companies are increasingly paying top salaries to compete with
the MNCs and to attract top quality professionals.
Global HR firm Hewitt Associates has
forecasted an average salary hike of 14.5% in the year 2007 for
India, making India to net the highest growth in Asia- pacific
in 2007. Banking and financial services sector may continue with
an above average hike of approx. 15.7% to 16.5% this year. But
India has still a long way to go to match international salary
standards. Salaries in India are still low compared to other
Asian neighbours, such as China but the average pay increase
in India is more than China.
The financial sector has
seen zooming salaries. Pay hikes
have ranged from 20% to more than 100% at time in the year
2006-2007. At the same time attrition has also increased and
is currently a little less than 30%.
The highest entry level
salary paid to a MBA by an Indian firm was Rs. 60 Lakh.Class
of 2007-IIML .The trend in the average annual salary in IIML
this years is about Rs. 10 lac per annum. Approx.30% foreign
recruiters expected at the campus this year. Private Equity
and Investment banking firms are the top favorites e.g- J.P
Morgan ,Barring P.E etc. Treasury and corporate banking functions
are also hot this year.
According to a survey by
Hewitt Associates- a global human resources firm - India
had the maximum salary increase in the Asia Pacific region
, which was around 13 % in the year 2005. In the year 2006
,India has once again reported the highest average salary increase
in Asia at 13.8 per cent, says the 7th annual Asia-Pacific
Salary Increase Survey conducted by Hewitt Associates. Hewitt's
study indicates that variable pay continues to be an important
means of attracting and retaining talent, with 78 per cent
of responding organisations using them. It is expected that
India and China will continue to have robust salary increases
in the coming years
A One crore package is now quite common
place. At Indian Institute of Management , Bangalore
a student got an offer of Rs. 85 lakh ($ 1,93,000) from Barclays
Capital. At ISB-Indian School of Business Hyderabad the highest
salary was over Rs. one crore.This year PPOs - pre-placement
offer by the finance companies has been all time high.
With HSBC leading the way with highest pay package of
14.5 lakhs per annum, other companies like GE Money-8.5 lakhs,
Edelweiss Capital, ICICI prudential -(Rs.8 lakhs per annum
) have also made decent offers.-Source- FMS Delhi.Also,
compensation in the financial services sector are also driven
by bonuses and there has been a near 100% jump this year. Though
there are many job openings in this financial services sector-there
is a dearth of talent. Attrition is high and poaching is quite
common.More companies are hiring from top tier B schools, and
the salaries offered this year have seen a huge surge
upwards vis-à-vis previous years. The maximum offers
came from financial services and the IT and KPO/BPO sectors.
At IIM Ahmedabad-Barclays offered 16 positions. But the Financial
services sector was clearly dominant this year and traditional
hot sectors as FMCG etc. came second. Last year , Wellingkar
placed 189 students with the highest salary of Rs.7.2 Lakh
given by a domestic company and around Rs 17 Lakh for an international
assignment.
Higher salary was offered to students having
specialisation catering to the new requirements of the industry.
Companies with new requirements include -Standard Chartered,
Lehman Brothers, Glodman Sachs, Mcguaire Bank etc. Average salary
offered ( TOP TIER B SCHOOLS) was in the range of 8-10 lakhs
and average foreign salary was in the range of $75,000-$1,00,000
per annum.
MDs salary level-1 crore-4.5 crores. Sample this: Two recent
recruit in Reliance Retail was at Rs. 4.5 & 4.2 crore respectively.
DSP Merill Lynch offered a top salary of 4 crore and last year
Standard Chartered Bank offered Rs. 4 core as well. Upper
level management in India is increasingly adapting its pay standards
as per global standards, benchmarking US and the UK.
Presidents, CFO, Business Heads-50 Lakhs - 1 crore+ per annum
Vice President, General Manager-Rs.20 Lakhs - 50+Lakhs per annum
Mid Level Salary can range from 5 lakhs to 20 lakhs per annums
Salary at lower level can range from Rs 2 lakhs to 5 lakhs per
annum.
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