BENGALURU: IT major Wipro's newly appointed CEO and MD Srinivas Pallia will receive an annual compensation in the range of Rs 37 crore to over Rs 58 crore ($4.5 million to $7 million).
According to a regulatory filing, his basic pay will be in the range of $1,750,000 per annum to $3,000,000 per annum and target variable pay will be in the range of $ 1,750,000 per annum to $3,000,000 per annum. In total, this comes to $3.5 million - $6 million.
"His 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, from time to time," the company added in a regulatory filing.
Apart from this, his long-term incentives include stock compensation through grant of American Depositary Shares (ADS) Restricted Stock Units (ADS RSUs) and ADS Performance Stock Units (ADS PSUs) aggregating to an amount $4,000,000, consisting of ADS RSUs worth of $1,400,000 and ADS PSUs worth of 2,600,000.
The vesting schedule for the $4 million stock is spread over three years: 25% on May 2, 2025, (about $1 million), 25% on May 2, 2026 and 50% on May 2, 2027.
Vesting of PSUs shall be subject to achievement of revenue, margin, and free cash flow targets as per Company policy, the company said.
Pallia was appointed as the new CEO with effect from April 7, 2024 for a period of five years.
Wipro's former CEO Thierry Delaporte was the highest paid CEO in the IT sector in FY23 as he earned Rs 82.4 crore. Wipro's board has also approved $4.33 million (over Rs 35 crore) in the form of cash compensation and applicable social security contributions, subject to appropriate deductions, to Delaporte who resigned as CEO and MD of the company on April 6, 2024.
Infosys CEO Salil Parekh's compensation stood at Rs 56.44 crore in FY23 and Tata Consultancy Services' (TCS) former CEO Rajesh Gopinathan took home nearly Rs 29.16 crore in FY23.