Fri. Jun 14th, 2024
TCS Former CEO Saw 118 pc Hike In Salary Over Last 3 Years, Still Drew Lower Than Contemporaries

Former chief executive officer (CEO) Rajesh Gopinathan of Tata Consultancy Services (TCS) drew almost Rs 30 crore salary in FY 2022-23, a 13 percent hike from Rs 25.76 crore in fiscal 2021-22.

Components included in Gopinathan’s total remuneration were: Rs 1.73 crore as salary, Rs 2.43 crore as benefits, perquisites, and allowances, and Rs 25 crore as commission.

TCS Former CEO Gopinathan held 2,760 equity shares in TCS as of March 31, 2023. Gopinathan, who resigned from his chief executive post in India’s largest IT firm in terms of market cap and revenue earlier this year, has seen almost a 118% increase in his remuneration in 3 years.

In March this year, Gopinathan jacked in as CEO and MD at TCS to pursue other interests. K. Krithivasan, filled in his shoes. He has been with TCS for over a three-decades. In his prior role, Krithi was the Global Head of the Banking, Financial Services, and Insurance (BFSI) Business Group. He took the reins as CEO at TCS on June 1, 2023.

N Ganapathy Subramaniam (NGS) who is TCS’ chief operating officer (COO) since February 2017, drew about Rs 24 crore last fiscal, a 14 percent raise from Rs 20 crore the previous year.

His remuneration division was: Rs 1.61 crore as salary, Rs 2.48 crore as benefits, perquisites, and allowances, and Rs 19.50 crore as commission.

Salraies of TCS Executives
Source: TCS Annual Report 2022-23

TCS bigwigs’ compensation includes salary, other benefits, perquisites, allowances, and commission, which is calculated based on the net profits of the company in a particular fiscal.

Even though TCS former CEO Gopinathan’s compensation hiked about 118 percent, it was still lower than what his contemporaries drew the previous fiscal.

Compensation Of Tech CEOs:

Infosys’ annual report for 2022-23 showed CEO Salil Parekh took home ₹56.45 crore in total, of which total fixed salary was ₹7.12 crore, bonus/incentives ₹18.73 crores, and ₹30.60 crores as perquisites on account of stock options exercised.

In FY22, HCL Tech’s CEO C Vijayakumar earned around $16.52 million (about ₹130 crores). His base salary was $2 million, $2 million was performance-linked incentives, $12.50 million was long-term incentives, and $0.02 million was perquisites.

Wipro’s CEO Thierry Delaporte earned gross remuneration of nearly ₹79.81 crores in FY22.
Tech Mahindra’s chief CP Gurnani took home ₹63.4 crore.

Despite a 3x jump in compensation of Gopinathan, N Chandrasekaran, the CEO before Gopinathan, drew Rs 30.15 crore compensation in FY17, higher than the latter in FY23.

Employees Particulars:

Overall, at TCS, during FY23, the percentage increase in the median remuneration of employees was 5.11%.

TCS’s annual report for FY23 showed that the average yearly increase was between 5-8% in India. “However, during the course of the year, the total increase is in the range of 6-9%, after accounting for promotions and other event-based compensation revisions. Employees outside India received a wage increase varying from 1.5 to 5.5%.”

As of March end, TCS had 6,14,795 permanent employees.

 

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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