<p>This study explores the association between board composition and the capital structure of the companies and whether capital structure mediates the relation between board composition and executive compensation. The study uses a sample of 484 companies from a population of BSE-1000 Indexed companies from 2014–2015 to 2023–2024. The study employs the balanced panel data regression technique to test the hypotheses. To overcome the issue of reverse causality and endogeneity, one-year lagged values for all the independent and control variables were used in the regression equations. Additionally, to control for unobservable company-specific and time-invariant heterogeneity and unobserved time-variant effects, company-fixed and time effects were used. The Generalized Method of Moments (GMM) method is also employed to validate the panel regression results and overcome the endogeneity problem. The findings reveal that the capital structure fully mediates the relationship between corporate governance and the compensation paid to the executives of the company. This study provides insights into the factors driving executive compensation. The findings are crucial for shareholders as executive compensation erodes their wealth and by understanding these factors, shareholders can make more informed decisions along with advocating policies that protect their interests. This study will also help in formulating a balanced compensation policy by aligning the interest of the executive with the interest of shareholders. The results are also important for the regulators to help design board composition and executive compensation through various legislations.</p>