Wipro's newly appointed chief executive officer and managing director Srini Pallia will get up to $6 million in annual salary. Wipro CEO’s pay package includes basic pay in the range of $1.75 million per annum to $3 million per annum. In addition to this, Pallia is entitled to target-linked variable pay in the range of $1.75 million to $3 million per year.
The actual payout will vary based on the organisation level achievement on parameters of revenue and profit, and such other criteria as may be determined by the board of directors, the IT company says in a regulatory filing.
Wipro has also granted long-term incentives to Pallia in the form of stock compensation through a grant of American Depository Shares (ADS) restricted stock units (ADS RSUs) and ADS performance stock units (ADS PSUs) aggregating to $4 million, consisting of ADS RSUs worth of $1.4 million and ADS PSUs worth of $2.6 million.
25% of these stock units will vest on May 2, 2025, another 25% on May 2, 2026, while the remaining 50% on May 2, 2027.
Pallia has been with Wipro for over three decades and most recently served as the CEO for Americas, Wipro's biggest and fastest-growing market. In this role, he oversaw diverse industry sectors, established their vision, and implemented growth strategies, resulting in increased market shares within these sectors. He joined Wipro in 1992 and has held many leadership positions, including president of Wipro’s consumer business unit and global head of business application services.
Wipro has also approved payment of cash compensation of $4.33 million to the former MD & CEO Thierry Delaporte who resigned from close of business hours on April 6, 2024.
Delaporte took home around $10 million (₹83 crore) in 2022-23 compared with $10.5 million he earned in the previous fiscal.
Wipro executive chairman Rishad Premji’s compensation halved in the financial year 2022-23 as the IT company reported a drop in its FY23 profit. Premji’s total salary stood at ₹7.8 crore in FY23. This includes salary and allowances of ₹7.1 crore and deferred benefits – such as provident fund – of ₹61 lakh. The Wipro chairman had received a salary of ₹13.8 crore during FY22.
Remuneration of the company’s executive officers, including its executive directors, consists of a fixed component and a variable performance linked incentive. Criteria for variable pay includes financial parameters like revenue, profit achievement, operating margin achievement and other strategic goals.
The IT firm reported an 8% year-on-year fall in consolidated net profit to ₹2,835 crore during the March quarter of the last fiscal as compared to ₹3,074 in the same quarter of FY23. FY24 proved to be a challenging year for the IT services industry, and the macroeconomic environment remains uncertain, the company said. Wipro’s revenue for the quarter stood at ₹22,210 crore in Q4 FY24, down 4.2% as compared to ₹23,190.3 crore in the year-ago period.
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