Synopsis: Former Wipro CEO Thierry Delaporte earned over $20 million (approximately Rs 166 crore) in FY24, maintaining his position as the highest-paid CEO in the Indian IT sector for the second year in a row. His compensation package included salary, allowances, commission, variable pay, long-term compensation, and a significant severance-related cost incurred by Wipro.
Former Wipro CEO Thierry Delaporte earned over $20 million (approximately Rs 166 crore) in FY24, making him the highest-paid CEO in the Indian IT industry for the second consecutive year. His compensation package included over $3.9 million as salary and allowance, more than $5 million in commission/variable pay, nearly $7 million categorized as "others," and over $4 million in long-term compensation.
Severance Costs and Leadership Transition
Wipro incurred Rs 92.1 crore in severance-related costs for Delaporte in FY24 following his resignation on April 6. Srinivas Pallia, a 32-year veteran at Wipro, was appointed as his successor, with an annual remuneration package of around Rs 50 crore, making him the second-highest-paid CEO in the Indian IT industry for FY25.
Comparison with Other IT CEOs
- Salil Parekh (Infosys): Rs 56 crore annual remuneration for FY24.
- C Vijayakumar (HCLTech): Rs 28.4 crore for FY22-FY23.
- Debashis Chatterjee (LTIMindtree): Rs 17.5 crore for FY22-23.
- Mohit Joshi (Tech Mahindra): Rs 6.5 crore fixed annual compensation plus an equal amount in variable pay.
- K Krithivasan (TCS): Rs 25.36 crore in annual compensation for FY24, the lowest among CEOs of large IT companies.
Executive Compensation Amid Revenue Decline
The increase in Delaporte’s pay for the second straight year comes at a time when Wipro's revenue has been declining, highlighting the growing disparity between executive compensation and the pay of fresh graduates. Additionally, Wipro Executive Chairman Rishad Premji’s commission was withheld as the company posted a loss for the fiscal year.
Acknowledgment of Contributions
Delaporte’s compensation package also included costs related to the accelerated vesting of 989,130 unvested stock options and a cash compensation of $4.33 million. This was in recognition of his contributions to the company's transformation and to ensure a smooth transition, along with adherence to post-engagement obligations such as confidentiality and non-solicitation.
This extensive compensation highlights both the value placed on executive leadership in navigating company transformations and the challenges of aligning such packages with broader company performance and industry standards.
