Among chief executives of India’s top information technology (IT) companies, Salil Parekh of Infosys drew a pay package of around ₹40 crore ($6.15 million) in the last fiscal, up 27% year-on-year.
Infosys chairman Nandan Nilekani voluntarily chose not to receive any remuneration for his services. COO UB Pravin Rao’s compensation rose 29% to $2.2 million, while the two presidents, Ravi Kumar and Mohit Joshi, saw their remuneration rise to $3 million and $3.2 million, jumps of 25% and 24.6% respectively.
In comparison, Wipro’s chief executive officer Abidali Z Neemuchwala’s pay package rose 12% to almost ₹31 crore ($4.42 million) in FY20, according to a recent regulatory filing. June 1st was also Neemuchwala’s last day in the office as he made way for former Capgemini COO Thierry Delaporte.
The largest company by revenue, Tata Consultancy Services (TCS), reported a drop in its CEO salary after the company executives took a pay cut due to the pandemic. Annual remuneration of TCS CEO and MD Rajesh Gopinathan shrunk 16.5% to ₹13.3 crore in 2019-20, according to the company’s annual report. COO and executive director N Ganapathy Subramaniam took 13% lower remuneration and CFO V Ramakrishnan took 3.5% lower remuneration respectively.
IT companies have noted some structural concerns in supply and demand that hit revenues slightly in Q4 FY20 but are certainly likely to cause serious damage in Q1 and Q2 FY21.
Worldwide IT spending is projected to total $3.4 trillion in 2020, a decline of 8% from 2019, according to a forecast by Gartner, Inc.
The coronavirus pandemic and effects of the global economic recession are causing leaders to prioritie spending on technology and services that are deemed “mission-critical” over initiatives aimed at growth or transformation.