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37-42% surge in emoluments for CFOs in TCS, Infosys, Wipro

Moumita Bakshi Chatterjee
Vishwanath Kulkarni

New Delhi/Bangalore, July 8 As the gravity-defying Sensex hits new milestones and the optimism about economic growth rings loud-and-clear, the top honchos of India’s largest software services companies — Tata Consultancy Services (TCS), Infosys and Wipro — seem to be enjoying a different high. The top brass in these companies have seen gross remuneration hikes ranging anywhere from 20 per cent to as high as 92 per cent in FY07, outpacing about 15 per cent increase in average tech pay-packages.

Gross remuneration is subject to tax and comprises salary, allowances, cash incentives, monetary value of perquisites and the company’s contribution to Provident Fund and Superannuation Fund.

Sample this. The remuneration in case of the Wipro Chairman and Managing Director, Mr Azim Premji, zoomed 92 per cent year-on-year to Rs 3.58 crore in 2006-07 — the highest among the top order — whereas the remuneration package of Wipro Tech COO, Dr A.L. Rao, rose 23 per cent to Rs 99.2 lakh.

Others in the pecking order in this Bangalore-based company included Wipro Tech President-Finance Solutions, Mr Girish Paranjpe, who received a 30 per cent hike, taking home gross remuneration package of Rs 1.04 crore in FY07, even as Wipro Infotech President, Mr Suresh Vaswani, took a 25.4 per cent raise.

These companies also did not leave their financial honchos disappointed. For Chief Financial Officers (CFOs) of the three leading software firms the emoluments surged between 37 per cent and 42 per cent.

The increase in remuneration for Wipro CFO, Mr Suresh Senapaty, was 37 per cent year-on-year; for Infosys CFO, Mr V. Balakrishnan, 42 per cent; and TCS CFO, Mr S. Mahalingam, almost 39 per cent.

Infosys Technologies’ annual report shows the 2006-07 gross remuneration of its Chairman and Chief Mentor, Mr N.R. Narayana Murthy, at Rs 28.05 lakh albeit for only a part of the year, and hence the figure is not comparable to the previous year.

The company hiked Mr Nandan Nilekani’s compensation (CEO in these two years but currently the co-chairman) by 24.7 per cent in FY07 to Rs 51.35 lakh while that of Mr S. Gopalakrishnan (President, COO and joint Managing Director earlier, and now CEO and Managing Director) went up 22.6 per cent to Rs 51.74 lakh.

The package for Infosys’ Director-Education and Research and HR, Mr T.V. Mohandas Pai, shot up about 21 per cent.

It is pertinent to mention here that apart from the hikes, the promoters of these companies have also taken hefty dividends.

In the corporate management team of TCS, CEO and Managing Director, Mr S. Ramadorai’s gross remuneration was up over 20 per cent in FY07 to Rs 2.57 crore.

According to the information in the company’s annual report, the gross remuneration of the Executive Vice President, Mr Phiroz Vandrevala, went up about 52 per cent, and that of the Executive Vice-President, Mr N. Chandrasekaran, rose 74 per cent year-on-year.

TCS’ Executive Vice-President, Mr S. Padmanabhan’s gross compensation was up 55.1 per cent during the period.

More Stories on : Software | Human Resources | Infosys Technologies Ltd

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