Premji took a pay cut of around 20% with a compensation package of $769,456 (around Rs 6.5 crore) in FY24 from $951,353 (around Rs 7.9 crore) a year ago. Consequently, his salary showed a decline to $692,641 (around Rs 5.8 crore) from last year’s $861,000 (around Rs 7.2 crore) with the balance being other long-term compensation, the filing released on Thursday showed.
Wipro chairman Azim Premji’s son Rishad Premji is entitled to a 0.35% commission on incremental consolidated net profits of Wipro over the previous fiscal year.
“However, in light of the fact that the incremental consolidated net profits for fiscal year 2024 was negative, the Company determined that no commission was payable for fiscal year 2024 to Mr. Rishad A. Premji,” the company filing said.
Rishad Premji was also not granted any stock options this year as well. Aged 46, Rishad Premji took over as chairman of Wipro in 2019 for a period of five years and has been reappointed for a further five years till July 30, 2029.
In FY23, he had taken a 43.34% lower remuneration from FY22 while Wipro’s former CEO and managing director Thierry Delaporte’s remuneration had risen by 3.26%.
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Becoming the highest paid CEO in the IT sector, Delaporte earned a total compensation of $20.11 million (around Rs 166.5 crore) in FY24. His salary stood at $3.9 million with a variable pay of $5.06 million, long-term compensation of $4.32 million and other payout of $6.84 million. In FY23, Delaporte’s total compensation was just over $10 million.After his resignation in April this year, ET reported that Delaporte was granted a separation payment of Rs 92.1 crore (or about $11 million). The company was required to pay Mr. Delaporte, severance pay of 12 months’ base salary as last applicable when in service, payable over a 12-month period following the date of termination.
The payouts come at a time when Wipro is struggling to keep pace with its peers in terms of growth even as the overall $254 billion IT sector is facing slowdown in business.
Wipro has guided for a revenue growth between (-) 1.5% and 0.5% in the first quarter of FY25 ending June 2024 citing continued weakness in demand and tough macroeconomic environment.
For the full year FY24 ending March, Wipro’s revenue declined 3.8% year-on-year (YoY) and 4.4% weaker in constant currency terms to Rs $10.8 billion (Rs 89,760 crore). Its net profit was lower by 2.7% YoY to $1.3 billion for the full year.
