BENGALURU: Wipro chief executive Abidali Neemuchwala’s salary jumped nearly 41% to $3.95 million (approx Rs 27 crore) in fiscal year 2019, with variable pay forming a significant chunk, regulatory filings by the company show. He earned $2.8 million in the previous year. Chairman-designate Rishad Premji’s compensation grew by 9%, while chief financial officer Jatin Dalal’s pay increased 23% during the same period, according to the filings.
Neemuchwala and Premji both receive their variable pay annually, unlike other executives who get it through a quarterly performance-linked scheme. “The remuneration of executive officers is computed on accrual basis. It also included the amortisation of Restricted Stock Units (RSUs) granted to them, which vest over a period of time. This also includes RSUs based on the performance parameters of the company,” said Wipro in its filing.
Indian IT firms have been paying top dollar for key executives amid turmoil as customers reduce spending on traditional services and make a shift to digital.
Infosys CEO Salil Parekh, in his first year at the IT services company, earned Rs 24.67 crore (nearly $3.7 million) last financial year, while TCS CEO Rajesh Gopinathan’s compensation jumped 28% to Rs 16 crore ($2.4 million).
Neemuchwala’s pay hike comes at a time when the $8.5 billion software services company has lagged peers in growth due to client buys, acquisitions gone wrong and restructuring of its businesses. In fiscal 2019, Wipro grew 5.4% in dollar terms, while cross-town rival Infosys saw 9% growth. Tata Consultancy Services showed double-digit growth rate during the same period.
HCL Technologies, which overtook Wipro to the third slot, grew 11.8%, partly contributed by acquisition of some IBM products.
The Wipro CEO has the tough task of stabilising the company and getting it back to faster growth.
“We think we are moving in the right direction. Partly, it is about what we are doing and partly it is about the macro environment. I don’t want to put a time frame for it, but clearly we are trending in the right direction,” Neemuchwala had told ET in April.
The software services exporter said last week that Neemuchwala would hold additional charge as managing director with effect from July 31, after Azim Premji said he would step down as executive chairman.
Premji, who was at the helm of Wipro for 53 years, will continue to be on the board as a nonexecutive director and has been redesignated as founder chairman.
Source: Economic Times