Anindita Nayak
Bhubaneswar, May 23
For the second consecutive year, Wipro’s Executive Chairman, Rishad Premji took a pay cut as he opted out of receiving any variable or commission pay as part of his annual remuneration.
This decision was made because the company’s incremental consolidated net profit for the fiscal year was negative, a recent 20-F filing with the US Securities and Exchange Commission showed.
In FY24, Premji’s pay decreased by about 20% compared to the previous year. His compensation package was $769,456 (around Rs 6.5 crore), down from $951,353 (around Rs 7.9 crore) last year. His salary also dropped to $692,641 (around Rs 5.8 crore) from $861,000 (around Rs 7.2 crore) last year, with the remaining amount being other long-term compensation, as stated in the filing.
Rishad Premji is eligible for a commission of 0.35% on any increase in Wipro’s consolidated net profits compared to the previous fiscal year.
“However, in light of the fact that the incremental consolidated net profits for fiscal year 2024 was negative, the Company determined that no commission was payable for fiscal year 2024 to Rishad A. Premji,” said the company filing. He also did not receive any stock options this year. In the fiscal year 2023, his remuneration was 43.34% lower than in FY22.
Meanwhile, Wipro’s former CEO Thierry Delaporte became Indian IT industry’s highest paid executive for the second consecutive year. He earned a total compensation of $20.11 million (around Rs 166.5 crore) in FY24. His salary was $3.9 million, with variable pay of $5.06 million, long-term compensation of $4.32 million, and other payouts totaling $6.84 million. In FY23, his total compensation was around $10 million.
After resigning in April this year, Delaporte received a separation payment of Rs 92.1 crore (or about $11 million). The company was obligated to provide severance pay equivalent to 12 months’ base salary, payable over a 12-month period following the termination date.
