DELOITTE PROMOTIONS
Professional services companies add record partners as business booms
The professional services sector in India is experiencing significant growth, with top firms collectively amassing over 3,300 partners. EY stands out as the first firm to surpass 1,000 partners, driven by strong growth in advisory services post-Covid-19 disruptions. The Big Four firms reported combined revenue exceeding ₹39,000 crore, with a focus on expanding leadership to meet rising demand. Deloitte, PwC, and KPMG have been actively promoting and hiring partners, while Grant Thornton and BDO have also shown impressive partner growth.
Budget 2024 should hike basic income tax exemption limit to Rs 5 lakh in both old and new tax regimes: Deloitte
Finance Minister Nirmala Sitharaman is likely to present Union Budget 2024 this month. Salaried taxpayers are eagerly waiting for some much-needed tax benefits from the upcoming Budget. According to Deloitte, salaried people want Finance Minister to revamp tax slab benefits, adjust HRA rates, incentivise EV sales, and promote affordable housing in Budget.
This European country will be the world's most visited destination by 2040
The tourism industry is poised for significant changes by 2040, with Spain projected to surpass France as the world's top destination. A study by Google and Deloitte forecasts emerging middle-class travelers from markets like China and India will boost Spain's ascent, due to its cultural richness, landscape diversity, and tourism investment.
New govt to inherit strong economy, focus on making India developed nation by 2047
India's record-breaking economic growth rate and strong tax revenues provide a foundation for future reforms aimed at transforming the country into a developed nation by 2047. The new government must address challenges such as unemployment and rural distress, while also focusing on controlling inflation. Despite potential obstacles, experts expect continued infrastructure-led growth, investor-friendly policies, and reforms to maintain India's economic momentum and attract investment.
Industrial policy is back. Is this what India needs for an ‘atmanirbhar’ economy?
Mere rise in GDP growth numbers are not enough. What India needs to become a global manufacturing powerhouse is a well-outlined policy that gets the wheel spinning on job creation, skills and holistic growth — especially as the world tilts towards protectionism.
Attrition rates continue to remain high for MBA graduates; drop in pre-placement offers: Study
Deloitte India's study on MBA graduates reveals high attrition rates, location preferences, and trends in compensation and skills assessment.
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CSR activity transcends compliance boundaries, companies embrace impact investing: Deloitte
Indian companies are expanding their corporate social responsibility (CSR) initiatives beyond compliance, with a focus on strategic impact investing such as social bonds and pay-for-success models, according to a Deloitte India survey. While interest in innovative models is high, navigating complexities remains a challenge. CSR is increasingly seen as a key driver of corporate strategy, with firms re-evaluating their strategies in response to changing regulations and ESG norms.
Indian companies show interest in impact investing but face challenges: Deloitte CSR survey
Deloitte India's CSR preparedness survey reveals that only 28% of Indian organizations feel very prepared for impact investing, despite high interest. The study shows a shift towards CSR as a strategic driver of corporate strategy, with increased investment in technology solutions and focus on accountability.
Govt plans to make anti-fake review rules mandatory for e-commerce firms
The government issued the new quality norms for e-tailers a year ago, prohibiting them from publishing paid reviews and demanding disclosure of such promotional content.
BAT unlikely to bat on the board of ITC's hotels biz
ITC's hotel business will not have any board representation from its largest shareholder, BAT, according to a demerger document. BAT will own 15.32% in ITC Hotels as foreign direct investment, making it the largest public shareholder after ITC's promoter holding of 39.93%. BAT's chief executive Tadeu Marroco stated last December that ITC's hotel business was not an area of interest for the British tobacco maker.
Big 4's dominance: Local companies call for level playing field
Indian auditing firms are pushing for fair competition with multinational counterparts, expressing concerns over the Big Four's increasing dominance and alleged manipulation of regulatory loopholes. The Institute of Chartered Accountants of India (ICAI) recently investigated affiliates of EY, Deloitte, PwC, and KPMG, where the firms were able to obtain court stays against disciplinary actions by the ICAI disciplinary committee after years of scrutiny, according to local rivals.
Data sharing among authorities, taxpayers can help improve I-T dept AIS functionality: Deloitte
Information about the taxpayer relating to specified financial transactions such as cash deposit/ withdrawal from bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buyback of shares, cash payment for goods and services etc.
India Inc CXOs’ pay packets are getting fatter
CEO compensation in India Inc is on the rise, with median pay reaching Rs 9.3 crore in FY24. The average CEO compensation has surged to Rs 13.8 crore, up 40% from previous levels. About three out of every four CEOs in India now earn more than Rs 5 crore, the survey has found. CEOs earning more than Rs 20 crore in target total compensation has doubled over the last four years. Every second CEO had a target compensation of more than Rs 10 crore in FY24, compared with every third CEO in FY20.
Median CEO compensation stands at Rs 9.3 crore in 2024, up 35% compared to Rs 6.9 crore in 2020
CEO compensation surged in 2024, with median pay at Rs 9.3 crore and average at Rs 13.8 crore. Promoter CEOs earned more than professionals, and long-term incentives play a significant role in compensation structures.
Does more work and bigger responsibilities lead to better compensation and promotions?
Research from Deloitte India and Randstad India indicates that employees taking on additional roles are receiving better increments, double promotions, and career advancement opportunities. This strategy benefits companies by retaining talent, cultivating skilled workers internally, and saving on external hiring costs. Such initiatives have reduced attrition and boosted employee engagement.
Average increment in India expected to slip to 9% in 2024, says Deloitte survey
Deloitte India Talent Outlook 2024 Survey shows that while overall average increment is lower than last year’s, increment projection for 2024 is higher than the pre-Covid levels across all sectors, except IT and BPO/ KPO. The survey also predicts that companies are likely to offer double-digit increments to junior management employees but with a high focus on performance-based differentiation.
Sebi may offer FPIs relief on stricter disclosures
The board may also discuss another proposal to allow alternative investment funds (AIFs) to pledge their shares in infrastructure sector investee companies in a bid to allow these investment vehicles to engage in leverage.
FPIs quizzed on 'loans' for trading
It's unclear why the information was sought, but the Income Tax (I-T) department has directed these offshore funds to disclose the identities of the lenders, the latter's source of money, and the nature of agreement between the two parties. The move to fish out such information could well be to trace any possible and indirect links between overseas portfolio managers with Indian companies and promoters, feel some of the tax and finance professionals.
India Inc has miles to go in building career path for employees
The Deloitte data reveals that a significant portion of Indian companies lack formal career management plans for employees. While many have clear promotion policies, they often lack holistic frameworks for managing careers. Only a minority of companies effectively communicate these processes to employees.
Move over cars, Japanese and Koreans are now entering your wardrobes
The success of brands like Uniqlo, MUJI and K-beauty companies highlights the East Asian countries’ Indian diversification and the various opportunities it brings.
Corporate India produces a flop succession show
Data from Deloitte shared exclusively with ET shows that the process works at just one of four organisations, although seven out of 10 do have a framework in place for succession planning.
Old is gold, but new-age cos prefer younger CEOs
Deloitte India's recent decision to send 35 senior partners above the age of 55 has sparked debates about ageism in India. However, data indicates that below-40 executives often run the show at new-age companies and startups, with large and complex firms relying on battle-hardened corporate veterans who have negotiated multiple business cycles. In NSE-500 companies, a typical Indian CEO today is 57 years old, similar to data on C-suite occupancy for Fortune-500 firms.
View: India dealing with a British legacy problem for 200 years
India's managing agencies, a system for separating control from ownership, were outlawed in 1970. However, the vestiges of this old system continue to thrive in the form of company promoters who exercise control over boards. Promoters, typically founders, are named in annual returns and are required to hold at least 20% of the post-public-issue capital. Problematic promoters, such as Subhash Chandra and Shivinder Singh, have caused losses for their companies. To protect public shareholders, a novel idea is to outsource governance to board service providers.
Big 4 firms expanding talent pool, promote young partners amid rapid growth and shifting dynamics
Top-tier consulting firms EY, Deloitte, PwC, and KPMG are rejuvenating leadership by promoting younger partners to navigate rapid growth, increased regulatory scrutiny, and technological shifts. The average age of new partners has decreased to 33-35, boosting diversity and talent pool expansion.
Gifting leave to one in need is a good deed indeed
Recent Deloitte survey shared exclusively with ET has shown that companies offering employees a chance to gift their leaves to colleagues in need promotes a culture of camaraderie and collaboration. Gift a leave helps in providing a safety net to employees, especially new employees, said experts.
FMCG will continue to grow but there will be a shift from mass to niche brands: Anand Ramanathan, Deloitte India
Ramanathan says: “Overall the market looks good, particularly rural India and hence as demand strengthens, some of these pressures of inflation will soften. Also, 60-70% of an FMCG brand's cost comes from the cost of raw material and therefore, inflation and geopolitics and commodity prices, etc, have impact on pricing which many a times they are not able to pass on to the consumer.”
Amid continuing global headwinds, many senior execs from tech companies join ‘big four’ as partners
Tech firms such as Accenture, IBM and Genpact have lost talent, said the people, along with Infosys, Wipro, TCS, HCL Tech and Tech Mahindra, with some of their senior executives moving either to consulting roles as Partners or senior level implementation and operations roles at the top four professional services firms.
Almost 50% of Nifty 50 CEOs, MDs earn over Rs 20 crore a year
A study by Deloitte reveals that 46% of chief executives/managing directors at Nifty-50 companies earned over Rs 20 crore in FY23, compared to 27% five years ago. The study also found that half of the promoter-incumbents earned more than Rs 20 crore in FY23, compared to 33% in FY18. The study analysed 41 of the Nifty 50 companies and found that compensation to CEOs/MDs has grown 12% annually over the last five years.
Big four firms now grapple with data protection challenges under DPDP Act
The Big Four accounting firms in India - EY, PwC, Deloitte, and KPMG - have formed internal committees to assess the impact of the Digital Personal Data Protection Act, 2023 (DPDP Act) on their processes. These committees have identified vulnerabilities and compliance gaps, prompting changes in how the firms access and store personal data of clients' customers. The new regulation will impact all major service lines, including audit, tax, and consulting.
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