Wipro’s incremental consolidated net profit for the year FY23 came as negative, and has also affected the annual remuneration for its Executive Chairman Rishad Premji as he saw his commission docked to the fact.
How Did This Happen?
He is entitled to a commission of 0.35 percent on incremental consolidated net profits.
So, due to the fact that it was negative, no commission was payable, reportedly.
Premji’s overall pay for the year was down to $951,353, from last year’s $1.8 million, as per the Wipro’s 20-F filings with the US Securities and Exchange Commission.
This has in turn affected his salary, which is also down to $861k from last year’s $1.1 million.
The news comes during the time when Wipro’s growth is slowing and the company expects a degrowth in revenue in the first quarter of FY24.
This is also attributed to the larger macro environment.
The IT service provider has guided revenue growth of -3 to -1 percent for the Q1FY24.
The Ace Earners In The Industry
Coming to the Chief Executive Officer,Thierry Delaporte, he has earned $10 million for FY23.
He has also seen a minor reduction in compensation from FY22’s $10.5 million.
Going through different components, Delaporte earned $1.6 million in salary, $1.3 million in variable pay, $4.17 million in deferred compensation.
The remaining $2.9 million was grouped in the ‘others’ bracket.
Notably, Delaporte was the second highest-paid CEO among the large IT companies in FY22.
Prior to this, Infosys CEO Salil Parekh had earnings of $9.36 million, outgoing TCS CEO Rajesh Gopinathan earned $4.48 million, with the highest being that of HCLTech CEO C Vijayakumar who earned $16.5 million after getting a two-year long-term incentive of $12.5 million, in the preceding year.
This latest update has also affected the Wipro Chief Financial Officer Jatin Dalal who has witnessed a reduction in pay in FY23 too, earning $1.084 million in 2022, from $1.5 million in FY22.
Besides this, the Bengaluru-based IT major has also seen its employee costs increase during the year as well.
Further the filing noted, “In absolute terms, cost of revenues increased by 16.11 percent, primarily due to an increase in employee compensation due to the impact of salary increases, including promotions, and increase in headcount, including through acquisitions, incremental sub-contracting costs incurred to fulfill vacant positions, increase in travel expenses as travel restrictions related to COVID-19 eased, and increase in software license expenses.”
