BENGALURU: Wipro CEO and MD Thierry Delaporte has resigned after serving the company for nearly four years. He is stepping down to pursue passions outside the workforce. The IT major has appointed Srinivas Pallia as the CEO and MD. He will be based in New Jersey and report to Chairman Rishad Premji.
In a BSE filing, Wipro said the board of directors noted the resignation of Delaporte with effect from April 6 and he will be relieved from the employment of the company with effect from the close of business hours on May 31, 2024.
At their meeting held on Saturday, the board of directors approved the appointment of Pallia with effect from April 7, 2024 for a period of five years.
Under Delaporte, the IT company's profit has fallen the most. For the fourth consecutive quarter, the IT company reported a fall in its consolidated net profit for the quarter ended December 2023. The company had posted a 12% y-o-y drop in net profit for the December quarter at Rs 2,694 crore. Its revenues for the quarter too dropped 4.4% y-o-y to Rs 22,205 crore.
Talking about succession planning during the third quarter earnings, he had said, "It is my responsibility to make sure that we are building proper succession planning." For the past four to five months, there have been reports that Wipro has been nurturing internal talent for the CEO role.
Pallia has been with Wipro for over three decades and most recently served as the CEO for Americas 1, the company's biggest and fastest growing strategic market. He is also a member of the Wipro Executive Board.
“Srini is an ideal leader to lead Wipro at this pivotal moment for our company and industry. Over the past four years, Wipro has undergone a major transformation under the most challenging external conditions. Srini has been an integral part of this journey. His client-centric approach, growth mindset, strong execution focus, and his commitment to Wipro's values, make him the perfect fit as we enter the next chapter of growth and profitability,” said Rishad Premji, Chairman, Wipro Ltd.
The IT company has seen at least 10 top-level exits in 2023 alone. During Q3 earnings, on leadership churn, Delaporte had said that it was a part of the company's strategy. "If you go back to our strategy that we elaborated in October 2020, this was precisely part of the strategy to acquire, enhance, grow, build and invest in talent, in particular leadership talent. We have a strong leadership team today and a strong pipeline of leadership."
Delaporte in his resignation letter said, "It has been an incredible honour, and I am grateful for the opportunity to have played a role in the growth and success of Wipro. During my tenure as CEO and MD, we have witnessed a significant transformation within the company that has not only driven financial growth but has also positively impacted our associates, clients and shareholders. I will be available to the company till May 31, 2024."
Delaporte was the highest paid CEO in the IT sector, earning Rs 82.4 crore in FY 23.
On his appointment, Pallia said, “Wipro is one of those rare companies that combines profit with purpose, and I am truly honoured to have been chosen to lead this iconic institution. I am excited to build on the strong foundation established by Thierry and lead Wipro on its next growth trajectory. I have built my entire career at Wipro, and I have a deep appreciation of our 78-year history and our incredible team of more than 240,000 associates. We have the right strategy, and tremendous people and capabilities throughout the organisation, and I am excited about the opportunities for future growth.”
The new CEO holds a bachelor’s degree in engineering, and a master’s in management studies from Indian Institute of Science, Bangalore. He graduated from Harvard Business School’s Leading Global Businesses executive program, and the Advanced Leadership Program at McGill Executive Institute.