C Vijayakumar, CEO of HCLTech, saw a staggering 190.75% increase in his remuneration for the fiscal year 2024, amounting to around Rs 84.16 crore. This makes him the highest-paid CEO among Indian IT services companies. According to HCLTech’s annual report released on July 22, Vijayakumar’s earnings far surpass those of his industry peers.
Breakdown of Vijayakumar’s Earnings
Vijayakumar’s total remuneration includes various components:
- Base Salary: $1.96 million (Rs 16.39 crore)
- Performance-Linked Bonus: $1.14 million (Rs 9.53 crore)
- Long-Term Incentive (LTI) Cash Component: $2.36 million (Rs 19.74 crore)
- LTI – Perquisite Value of RSUs: $4.56 million (Rs 38.15 crore)
- Benefits, Perquisites, and Allowance: $0.04 million
The total comes to $10.06 million, reflecting the substantial increase in Vijayakumar’s compensation.
Comparative Analysis
Vijayakumar’s remuneration is significantly higher than that of other top executives in the Indian IT sector. Infosys CEO Salil Parekh earned around Rs 66.25 crore, and Wipro’s new CEO Srini Pallia received approximately Rs 50 crore. In contrast, TCS CEO K Krithivasan’s maximum basic salary is about Rs 1.9 crore annually. Vijayakumar’s earnings are 707.46 times the median salary of HCLTech employees, highlighting the vast disparity.
HCLTech’s Financial Performance
In a letter to shareholders, Vijayakumar shared HCLTech’s financial achievements, noting a revenue of $13.3 billion for the year, up 5.4% YoY, and an EBIT margin of 18.2%. Despite a cautious outlook on discretionary spending, HCLTech reported seeing positive indicators in certain areas during Q1FY25.
Future Outlook and GenAI Initiatives
HCLTech maintains a cautious stance on discretionary spending but sees growth opportunities in emerging technologies such as GenAI, cloud, data, and cybersecurity. The company has delivered over 200 proofs of concept (PoCs) in GenAI and plans to upskill over 50,000 employees in FY25 in GenAI and related fields.
Vijayakumar emphasized the potential of GenAI, stating that HCLTech’s comprehensive portfolio and core engineering strengths position the company to help clients leverage GenAI effectively. The focus on practical technology solutions aims to unlock the full potential of GenAI for B2C and B2B use cases.
Conclusion
HCLTech’s significant growth and Vijayakumar’s record-breaking remuneration underscore the company’s strong performance and strategic direction. With a focus on emerging technologies and a robust financial outlook, HCLTech is poised to continue its leadership in the IT services sector.
