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

Core Insights - India's top companies have significantly increased fees for independent directors, more than doubling over the past five years to enhance governance and attract global talent [1][2]. Compensation Trends - The average compensation for independent directors at Nifty 50 companies rose from ₹52 lakh in FY20 to ₹1 crore in FY25, nearly doubling [2]. - CEO pay in the same companies increased by approximately 50% during the same period, although the comparison is not strictly like-for-like due to different remuneration structures [7]. Governance and Representation - Independent directors now constitute a significant portion of boards, with representation ranging from nearly 40% to over 50% in the last fiscal year [4]. - Regulations require all listed companies to have at least a third of their board members as independent directors, driving demand for qualified individuals [10]. Market Dynamics - Demand for independent directors has doubled in the last two to three years, driven by the need to address governance issues and the expansion of family businesses [10][11]. - Companies are increasingly willing to offer competitive remuneration to attract directors with global experience, often aligning closer to US standards [12]. Gender Pay Gap - Female independent directors have experienced a faster rise in pay, with compensation in FY25 approximately 2.1 times their FY20 levels, compared to a 1.9 times increase for male counterparts [13].