At a time when larger Information Technology (IT) players like Infosys, HCL Technologies and Tech Mahindra cut down their chief executive officer’s (CEO) compensations in FY23, their smaller peers have handed out hefty paychecks during the year. In fact, many bosses at mid-tier IT firms have taken home larger cheques than their bigger peers.
For instance, Sandeep Kalra of Persistent Systems earned a total compensation of Rs 61.7 crore in FY23, which was just below Wipro's French CEO Thierry Delaporte, who received Rs 82.4 crore as annual salary.
Similarly, at Rs 59.2 crore, Nitin Rakesh of Mphasis occupies third rank among the highest paid Indian IT CEOs in FY23, data sourced from Annual reports revealed. Even Sudhir Singh of Coforge has earned higher than any other Nifty IT companies, excluding Wipro and Infosys.
| Total Compensation Paid (Rs Crore) | ||||
| Company | FY22 | FY23 | Chg % | CEO |
| Wipro | 79.81 | 82.41 | 3.3 | Thierry Delaporte |
| Persistent Systems | 46.87 | 61.66 | 31.6 | Sandeep Kalra |
| Mphasis | 35.14 | 59.17 | 68.4 | Nitin Rakesh |
| Infosys | 71.02 | 56.45 | -20.5 | Salil Parekh |
| Birla Soft* | 20.11 | 42.19 | 109.8 | Angan Arun Guha & Dharmander Kapoor |
| Coforge | 22.3 | 33.95 | 52.3 | Sudhir Singh |
| Tech Mahindra | 62.7 | 30.14 | -51.9 | CP Gurnani |
| Tata Consultancy Services | 25.77 | 29.16 | 13.2 | Rajesh Gopinathan |
| HCL Technologies | 123.13 | 28.44 | -76.9 | C Vijayakumar |
| LTIMindtree Ltd | 40.15 | 19.37 | -51.8 | Debashis Chatterjee & Sanjay Jalona |
| Birla Soft: Of the total Rs 42.2 crore, Rs 41.9 crore was paid to Dharmander Kapoor who resigned from the post on November 30, 2022 | ||||
The total compensation of TCS' Rajesh Gopinathan and Tech Mahindra's CP Gurnani stood at around Rs 30 crore each. The total remuneration to top employees includes fixed pay, variable pay, retiral benefits, and the perquisite value of stock options exercised during the period.
Barring Tata Consultancy Services (TCS) and Wipro, all IT companies in the Nifty pack saw their CEO’s salary falling in the fiscal FY23 as rising inflation and softening consumer spending dented profit margins.
Among the Nifty companies, sharp drop in remuneration was seen at HCL Technologies. The total compensation of HCL Tech CEO – C Vijayakumar came down by down by 77 percent to Rs 28.4 crore, mainly due to the absence of the long-term incentive component, which will be paid next fiscal year. Additionally, bosses of Tech Mahindra and LTIMindtree took home about 52 percent lower salary in FY23 compared to previous year..
Within the IT pack, mid-tier companies like Persistent Systems and Mphasis have reported net profits growth of up to 33 percent in FY23. That compares with below 10 percent growth clocked by Infosys, TCS and HCL Technologies during the year. The performance of these mind-tier IT companies have also been reflected in their share prices as companies like Persistent Systems, Coforge and Birlasoft, all have rallied over 33 percent each over the last one year.
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