Here's how much Indian IT CEOs earned in FY23
What's the story
Chief executive officers (CEOs) of Indian IT giants have always been paid handsomely. They are among the crème de la crème of India Inc.'s highest paid top executives. However, even they couldn't escape the slump that affected the IT sector in FY23. According to companies' annual reports, the remuneration of CEOs of India's top IT firms fell significantly in FY 2022-23.
Context
Why does this story matter?
The post-pandemic economy has been challenging for the IT sector. Macroeconomic issues put the global economy on a slide. This led to a reduction in corporate spending by companies in the US and Europe. This seems to have affected how Indian IT giants pay their CEOs. It should, however, be noted that CEO compensation has largely increased even when companies' growth slowed down.
HCL Tech
HCL CEO's remuneration fell by 80%
HCL Tech's CEO, C Vijaykumar, saw the biggest slump in remuneration. In FY22, his annual remuneration was Rs. 130 crore. However, in the previous financial year, he saw an 80% fall in his salary. Vijaykumar was paid around Rs. 30 crore in FY23. The sharp fall was reportedly due to the absence of the long-term incentive, which will be paid in FY24.
Tech Mahindra, Infosys
Infosys cut CEO's remuneration by 20%
Tech Mahindra's CP Gurnani saw a 50% decline in his annual remuneration in FY23. He was paid Rs. 64 crore in FY22. But in the previous financial year, his annual remuneration came in at Rs. 32 crore. Meanwhile, Infosys's Salil Parekh witnessed a roughly 20% cut in his remuneration. He earned Rs. 56.4 crore in FY23, compared to around Rs. 71 crore in FY22.
Information
Wipro Chairman Rishad Premji's remuneration fell by 50%
Wipro's CEO, Thierry Delaporte, did not experience a significant cut in annual remuneration. He was paid Rs. 82.4 crore in FY23, down from Rs. 86 crore in FY22. Meanwhile, Wipro Chairman Rishad Premji's compensation fell by 50%.
Comparison
CEO remuneration significantly increased over 10 years
Despite the fall in remuneration, the current CEOs of India's IT giants are still paid more than their predecessors. In 2013, Infosys CEO SD Shibulal was reportedly paid less than Rs. 1 crore. Wipro's TK Kurien's annual remuneration 10 years ago was around Rs. 6 crore. Notably, the rise in CEO salaries corresponds to a significant increase in the revenue of these companies.