A Guide to Compensation to Director in Indian Corporates

Nikhil6807 Jun, 2025Legal

Director compensation in Indian corporates is governed by the Companies Act, 2013. It includes salary, commission, sitting fees, stock options, and other perks. For executive directors like MDs or CEOs, remuneration must align with limits under Schedule V unless approved by shareholders. Independent and non-executive directors usually receive sitting fees and profit-based commission. Public companies must disclose director pay in board reports, ensuring transparency and accountability in governance.