- Increase in comprehensive package highlights the evolving nature of executive remuneration structures within the sector.
In the dynamic landscape of the Indian IT industry, the compensation packages of top executives often serve as a barometer for industry trends and market competitiveness.
One such prominent figure is Salil Parekh, the CEO of Infosys, whose compensation witnessed a notable surge of 17.3 per cent to Rs662.4 million ($7.9 million) in fiscal year 2024.
This substantial increase not only solidifies his position as one of the highest-paid Indian IT chiefs but also highlights the evolving nature of executive remuneration structures within the sector.
Parekh’s salary was next only to Wipro’s former CEO Thierry Delaporte, who earned Rs166 crores ($20 million).
At the forefront of executive compensation breakdown, Parekh’s total fixed pay amounted to Rs74.7 million, further supplemented by Rs197.5 million in bonuses, incentives, and variable pay.
Slowest revenue growth
The comprehensive package also encompassed Rs390.3 million attributable to perquisites related to stock options exercised during the fiscal year—a key contributing factor to the overall escalation in compensation.
Notably, the surge in pay is primarily attributed to the amplification in the number of stock options exercised throughout the period, underpinning the role of performance-based incentives in shaping executive compensation frameworks.
While Parekh’s compensation witnessed a significant uptick, it is imperative to juxtapose Infosys’ financial performance against the backdrop of this remuneration surge.
Notably, the tech giant experienced its slowest annual revenue growth rate ever in fiscal year 2024 based on constant currency growth metrics. Furthermore, the company’s revenue forecast for fiscal 2025, projecting growth between one per cent and three per cent in constant currency, falls short of analyst expectations that had pegged growth figures in the range of 2-5 per cent.
Lowest paid CEO
These divergences between executive compensation increments and corporate performance metrics underscore the nuanced interplay between leadership remuneration and organizational outcomes, warranting a deeper exploration into the alignment of incentives and strategic objectives at top-tier IT firms.
Comparatively, K Krithivasan, CEO of Tata Consultancy Services (TCS), reported a compensation of Rs253.6 million in financial year 2024, positioning him as potentially the lowest paid CEO among the top four Indian IT firms.
This divergence in compensation figures sheds light on the variance in remuneration structures across industry leaders and the resultant implications for talent attraction and retention strategies within the competitive IT landscape.
Similarly, Wipro’s latest appointment of Srinivas Pallia as the new CEO, with projected annual earnings ranging between $4.5 million and $7 million for the upcoming two years, serves as a testament to the evolving executive remuneration dynamics within the industry.
As a seasoned veteran within the company, Pallia’s ascension to the top echelons of leadership reflects Wipro’s strategic focus on continuity and internal talent development amidst a period of leadership transition.