rishad premji: Wipro chairman Rishad Premji takes 50% pay cut, Delaporte 5%


Wipro executive chairman Rishad Premji’s compensation almost halved in the financial year 2022-23 from the previous year, due to negative performance in itsIT services business, company filings show.

Chief executive Thierry Delaporte’s compensation also fell, but by a smaller 5%.

In FY23, Premji received $951,353 (Rs 7.9 crore) in salary, compared with nearly $1.82 million the year before, the company said in its annual report to the US Securities and Exchange Commission.

Premji is entitled to a commission at the rate of 0.35% on incremental consolidated net profit of Wipro Ltd over the previous fiscal year, said the report. “However, in light of the fact that the incremental consolidated net profits for fiscal year 2023 was negative, the company determined that no commission was payable for fiscal year 2023 to Mr Rishad A Premji,” said the company, which has its American depositary shares listed on the Nasdaq.

Delaporte, who is also the company’s managing director, received $10 million (Rs 83 crore), compared with $10.5 million in FY22. Delaporte was the highest paid CEO in the Indian IT sector in FY22. Within his salary components, variable pay fell 50% to $1.3 million, while long-term compensation benefits more than doubled to $4.17 million.

Wipro, India’s fourth largest software exporter, missed estimates to report a flat fiscal fourth-quarter net profit, while flagging uncertainties in technology spending by clients. Wipro guided for revenue to drop between 1% and 3% in the April-June quarter, owing to a negative demand outlook.

Discover the stories of your interest

According to the report, Wipro’s gross profit as a percentage of revenue from the IT Services segment decreased 0.94 percentage point, primarily due to an increase in employee compensation cost by Rs 7,429.5 crore. This higher employee cost was due to promotions and increase in headcount including through acquisitions. There were also incremental subcontracting costs of Rs 607.3 crore, increase in travel expenses by Rs 323.2 crore as Covid-19 travel restrictions were eased and higher software licence costs for internal use (Rs 407.4 crore).In absolute terms, cost of revenue increased 16.11% to Rs 64,544 crore, primarily due to the increase in employee compensation that rose 19.4%. As of March 31, 2023, Wipro’s workforce comprised 36.4% women. Around 17% of senior leadership roles and 22.7% management positions were held by women.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

Source link

Denial of responsibility! Planetconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment