Amidst CEO compensation cuts at major IT players like Infosys, HCL, and Tech Mahindra in FY23, smaller IT firms have notably awarded higher CEO paychecks. In fact, Mid-tier IT company bosses are even outearning their larger counterparts.
How much did the CEOs of IT firms earn this year?
As per a CNBC report, Sandeep Kalra from Persistent Systems earned ₹61.7 crore, ranking just below Wipro‘s CEO Thierry Delaporte, who received ₹82.4 crore. Mphasis‘ Nitin Rakesh earned ₹59.2 crore, securing third place. Sudhir Singh of Coforge earned more than other Nifty IT firms, excluding Wipro and Infosys, in annual compensation.
As compared to that, TCS‘ Rajesh Gopinathan and Tech Mahindra’s CP Gurnani earned total compensation approximately ₹30 crore each. Moreover, apart from these two companies, all IT companies in the Nifty pack saw their CEO’s salary falling in the fiscal FY23. It is to note here, the total remuneration includes fixed pay, variable pay, retiral benefits, and the perquisite value of stock options exercised during the period.
Mid-tier firms performed better that IT giants
Remuneration shifts in Nifty firms show HCL Tech’s CEO, C Vijayakumar, faced a 77% drop in pay to ₹28.4 crore, attributed to a missing long-term incentive tat will be paid next year. CEOs of Tech Mahindra and LTIMindtree also had 52% lower salaries in FY23. This is due to the fact that rising inflation and softening consumer spending dented profit margins.
The CNBC report cited, mid-tier companies like Persistent Systems and Mphasis have reported net profits growth of up to 33 percent in FY23. That compares with below 10 percent growth clocked by Infosys, TCS and HCL Technologies during the year. Share prices mirrored this trend, with companies like Persistent Systems, Coforge, and Birlasoft surging over 33% in the past year.
(Inputs from CNBC)
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Updated: 11 Aug 2023, 07:33 AM IST