Independent directors' fees double in 5 years

Profit surge, regulatory mandate, push for better governance drive fees

- Manjul Paul & Devina Sengupta

India's top companies have more than doubled the fees paid to independent directors over the past five years, a new study shows, as firms seek to boost governance and attract global talent.

A report by consulting firm Deloitte India found that the average compensation for independent directors at Nifty 50 companies nearly doubled from ₹52 lakh in fiscal year 2020 (FY20) to ₹1 crore in FY25. The findings, part of Deloitte's 'Nifty 50 Independent Director Remuneration Study - 2025 Edition,' exclude banks and insurance firms, which operate under separate compensation guidelines from the banking and insurance regulators.

The findings of the study were shared exclusively with Mint.

"The increase has been primarily driven by a strong profit growth of Nifty 50 companies over a five-year period, leading to higher commission payouts," said Dinkar Pawan, director, Deloitte India.