In a competitive race for skilled professionals, Global Capability Centres (GCCs) are reshaping how they reward senior leaders and management teams. Compensation structures are increasingly moving beyond fixed salaries to include long-term incentives.
A recent report by a GCC consulting firm highlights that many organisations are now offering benefits such as Employee Stock Ownership Plans (ESOP), restricted stock units, and performance shares as part of total compensation packages.
Based on MCA filings and interviews with senior executives, the report reveals that about 55–65% of large GCCs (parent companies with revenue above $5 billion) provide equity-linked payouts. For mid-market GCCs ($2 billion–$5 billion), the share stands at 45–55%, while Nano GCCs (below $1 billion) report 30–34% adoption.
These benefits significantly influence overall salary figures. Stock-based payouts contribute nearly 10–20% of the median CTC, often leading to higher reported compensation packages.
The report also outlines leadership pay ranges across segments. Senior leaders in large GCCs earn between $0.5–$1 million. In comparison, mid-market GCC leaders receive $0.25–$0.62 million, while Nano GCC executives earn between $0.16–$0.25 million.
Aditya Narayan Mishra, Managing Director and CEO of an HR firm, explained that the rise in stock-linked compensation is driven by the need to retain talent. “With the number of GCCs increasing there is a pressure to secure and keep the best talent. To redeem these options employees will have to stay with the company for a fixed period of time. So people who are trying to leave in one and a half years will stay for at least two years,” he said.
He added that such pay structures also help companies manage costs by balancing fixed salaries with stock incentives. This reduces immediate cash outflow while deferring a portion of employee expenses to the future.
From an employee’s perspective, equity-based compensation can also offer better tax efficiency compared to full cash payouts.
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