Wipro CEO Thierry Delaporte to get whopping severance pay. Here's how much

Wipro's Thierry Delaporte stepped down from his position of MD and CEO. Srinivas Pallia will be Wipro's new CEO.

Wipro-, India's fourth largest outsourcing company, announced that its CEO Thierry Delaporte will receive a severance payout of ₹92.1 crore, almost $11 million after his ahead-of-schedule exit. Wipro said in a company filing, “The Board of Directors noted the resignation of Mr Thierry Delaporte with effect from April 6, 2024. He will be relieved from the employment of the Company with effect from the close of business hours on May 31, 2024.”

Wipro CEO Thierry Delaporte speaks during a press conference in Bengaluru, India. (Reuters)

Srinivas Pallia has been appointed as the new CEO of the company.

According to the employment contract with the former chief executive of Wipro, "Pursuant to the terms of the employment arrangement with Mr. Delaporte, if his employment is terminated by the company without a cause, the company is required to pay Mr. Delaporte, severance pay of 12 months' base salary as last applicable when in service, payable over a 12-month period following the date of termination," "These payments will cease if Mr. Delaporte obtains a new employment within the 12- month period or becomes a consultant to any company."

CEOs at companies such as Tata Consultancy Services (TCS), Cognizant, and Wipro received severance packages that ranged from ₹48 - 92 crore. With this, Delaporte becomes one of top executives from the sector, who have job contracts that guarantee hefty packages on exit.

As per an Economic Times report, CEO of EIIRTrend Pareekh Jain said, “When the tenure of an IT Services company's CEO is abruptly cut short, the exit compensation is determined by the contract or industry practices, which could amount to up to one year of their salary.”