Anindita Nayak
Bhubaneswar, 31 May 31
More than three-fourths of Wipro’s public shareholders voted against the $4.33 million (Rs 36.15 crore) cash severance package for former Chief Executive Officer, Thierry Delaporte, according to a regulatory filing by the IT major.
At least 78.4% of Wipro’s public shareholders, making up 10.31% of all shareholders, voted against the cash compensation for Delaporte, as shown by voting records on the BSE website. At least seven major foreign institutional investors, including a UK fund and a Canadian investor, opposed the resolution.
With 73% promoter holding, Wipro secured an overall 89.69% vote in favor of giving the cash compensation to Delaporte, who resigned in April this year. Delaporte stepped down a year before completing his five-year term as CEO of Wipro, India’s fourth largest IT services company. After his resignation, Wipro announced it would pay him $4.33 million, which is considered as one of the highest cash severance packages ever given to a departing executive at the company.
Delaporte earned over $20 million (about Rs 166 crore) in fiscal 2024, making him the highest-paid CEO in India’s IT industry for the second consecutive year. A recent Wipro filing with the US Securities and Exchange Commission reveals that Delaporte earned over $3.9 million in salary and allowances, over $5 million in commission/variable pay, nearly $7 million in other categories, and $4.33 million in long-term compensation.
In its BSE filing, Wipro announced that shareholders approved the appointment of Srinivas Pallia as the new CEO and managing director of the company. The company earlier said that its new CEO and MD, Srinivas Pallia would receive a compensation up to $7 million per annum for the first two years. In an exchange filing, the company said this salary will include a cash compensation that may range between $1.75 million & $3 million.
