India’s largest software exporter, Tata Consultancy Services (TCS), has rewarded its chief executive N Chandrasekaran with a massive 60% hike in salary at Rs. 18.68 crore for the fiscal 2013-14 against Rs. 11.69 crore last year. This makes him the highest paid CEO in the country’s $118-billion IT industry.
A major portion of Chandrasekaran’s salary consists of performance-linked variable pay that has been listed as “commission” under the annual report of TCS. His commission during the fiscal 2013-14 stood Rs. 15 crore against Rs. 9 crore last year.
In comparison, Francisco D’Souza, CEO of Cognizant Technology, had a salary package of $1.5 million (Rs 8.89 crore) in 2013. SD Shibulal, CEO and co-founder, Infosys, earns a major portion of salary in the form of dividends estimated for the last fiscal at around $13 million (Rs 77 crore). Wipro’s TK Kurien raked in a package of Rs. 6.5 crore in 2013-14 against Rs. 6 crore last year.
The robust hike for TCS chief executive comes in the wake of better-then-expected performance of the company . It posted 30% rise in revenues grew by and 37.5% rise in net profit on an annual basis in 2013-14 fiscal.
“IT is an annuity-driven business and any outsourcing contract stays on with the company for several years… so it is the company’s way of rewarding its high performers,” said Akhilesh Tuteja, partner IT services, advisory firm KPMG India.