Tech Mahindra CEO Salary Slashed By 33% In Last One Year: Find Out Why?
The whole world is bearing the hit from the tiny but mighty virus called the Coronavirus. It pushed people back into their homes. Millions from the lower ranks lost their jobs. And as many people took the salary cuts. And it seems that the people in the lower echelon were not the only ones who took the blow.
In camaraderie with their fellow teammates, many top management people have also taken salary cuts to some extent. One such person at the top is Chief Executive Officer (CEO) and Management Director (MD), of Tech Mahindra, Mr. C. P. Gurnani.
Salary Slashed By 33%
As per Tech Mahindra’s annual report, in the last fiscal year of 2020-2021, the salary of the CEO and MD of Tech Mahindra received the salary of Rs. 22 Crore. This is down by 33% from the year before that.
As a part of the action plan to face the disastrous effects of the pandemic, the top management had decided not to take the variable pay or the bonuses since the first quarter of last year.
When the company was contacted for the comment they chose to remain silent on it.
As per the sources, Gurnani’s compensation consists of Rs. 2.7 Crore in salary, perquisites of Rs. 9 Crore, and commission of Rs. 1.7 Crore. We could not assert the rest of the components of the salary but is highly likely that the component comprises stock compensation benefits.
Different approaches taken by different companies
It is known that the CEO of Infosys, Salil Parekh earned Rs. 49 Crores in the last fiscal. At the same time, the salary of the CEO of TCS rose by almost 54% to more than Rs. 20 Crore. These salary increases cannot be directly considered as increments in base salaries. This might also be the effect of year-to-year changes in the stock vesting schedule.