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Executive Compensation at Wipro: What the Numbers Reveal
In FY25, Wipro Executive Chairman Rishad Premji saw a sharp rebound in his salary, which more than doubled to reach \$1.6 million (₹13.7 crore). This marks a significant leap from the previous fiscal year (FY24), during which he had voluntarily taken a 20% pay cut, bringing his earnings down to ₹6.4 crore. The pay cut was a response to the company’s weak financial performance, specifically a drop in incremental consolidated net profit.
However, FY25 brought a turnaround in Wipro’s financial trajectory. The company reported an 18.9% growth in net profit, touching ₹13,135.4 crore, which allowed the top brass to benefit from performance-linked incentives. Under company policy, both Rishad Premji and CEO Srinivas Pallia are eligible to receive 0.35% commission on incremental profit.
In comparison, Srinivas Pallia, who took over as CEO and MD in April 2024, earned a staggering ₹53.64 crore (\$6.2 million) in FY25. His compensation includes \$1.7 million in salary and allowances, \$1.7 million in variable pay, and \$2.8 million under “others”, along with \$68,850 in long-term compensation. Notably, Pallia also received 1.67 million stock options, whereas Premji received none.
It’s worth noting that Pallia’s salary is still significantly less than that of former CEO Thierry Delaporte, who took home ₹168 crore (\$20 million) in FY24, making him one of the highest-paid executives in India’s IT sector at the time.
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Wipro’s compensation strategy appears to be tightly tethered to performance metrics and financial outcomes, underscoring a culture of result-oriented incentives. Rishad Premji’s remuneration increase reflects a strong correlation between executive pay and the company’s fiscal health. His decision to take a pay cut in FY24 despite being the Executive Chairman sets a tone of accountability and corporate responsibility.
Srinivas Pallia’s compensation, while substantial, is strategically structured. The package balances fixed and variable elements, with significant reliance on long-term benefits such as stock options. This is a clear sign that Wipro is betting on long-term leadership stability and future value creation.
Interestingly, the stark contrast between Pallia’s earnings and that of his predecessor Delaporte highlights a strategic shift. Wipro might be moving toward a more sustainable, lean executive payout model, especially after a period of heightened scrutiny over high CEO compensation in the Indian IT sector.
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Moreover, the absence of stock options for Premji in FY25 might suggest his role is considered more strategic and long-term in nature, as opposed to performance-execution-focused like that of the CEO. Alternatively, it may indicate a personal or board-level decision to avoid stock-based incentives due to public perception or internal balancing.
As Wipro navigates a competitive global IT landscape, its executive pay structure signals confidence in its leadership, but also a cautious, performance-led approach. It remains to be seen whether this structure drives talent retention and performance efficiency, or whether it creates potential internal disparities.
In summary, Wipro’s FY25 executive payouts illustrate a nuanced interplay between business outcomes, corporate governance, and compensation ethics. The strategy may well serve as a blueprint for other Indian IT majors, especially in an era of increasing calls for transparency and responsibility in C-suite pay.
🕵️ Fact Checker Results:
✅ Rishad Premji’s pay did more than double in FY25, from ₹6.4 crore to ₹13.7 crore.
✅ CEO Srinivas Pallia’s ₹53.64 crore compensation includes salary, bonus, and stock-linked benefits.
✅ Former CEO Thierry Delaporte did indeed receive ₹168 crore in FY24, confirming comparative pay levels.
🔮 Prediction:
Given Wipro’s rising profitability and focus on performance-linked pay, we can expect further refinement in executive compensation structures. The company may increasingly favor stock-based incentives over fixed salaries to promote long-term value. With heightened attention on corporate governance and fairness, stakeholder pressure could push for more transparent and equitable pay practices across all leadership levels.
References:
Reported By: timesofindia.indiatimes.com
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