Hefty Executive Compensation seems to have impact on financial health of an organisation. Exorbitant amount of remuneration drawn by the executives often raises the question on balance of compensation between executive and non-executive groups of employees. This imbalance leads to the issue of inappropriate maintenance of corporate governance in an organisation. In order to comprehend the relationship between these two aspects i.e. executive compensation and corporate governance, an empirical study has been designed and performed involving four major service industries of India e.g Information Technology (IT), Telecommunication, Banking, as well as Healthcare. Ten top-ranked companies from each of these service sectors have been chosen to construct the sample group of 40 through quota sampling method. This ranking is based on their position as on the end of second quarter in 2015 in Bombay Stock Exchange (BSE) measured in terms of total annual turnover. Annual reports have been explored to obtain data of executive compensation for a period of 5 years i.e. 2010-11 to 2014-15. The measurement of corporate governance has been performed on the basis of recommended set of corporate governance principles by Organisation for Economic Co-operation and Development or OECD. The dataset has been constructed over the aforementioned 5 years' period. Finally, linear regression has been performed to comprehend the relationship between the corporate governance principles and executive compensation in Indian service sector.