Tech CEO pay packages reflect muted revenue growth outlook

Gurnani took home about Rs 32 crore in salary and other compensation in fiscal 2023, about half compared with Rs 63.4 crore the previous year, as per the company’s annual report.

Gurnani, who is set to retire in December, will pass the baton to Mohit Joshi, a former Infosys president.

In fiscal 2023, Infosys boss Salil Parekh’s remuneration fell by a fifth to Rs 56.4 crore. Its non-executive chairman and cofounder Nandan Nilekani did not take any remuneration.

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Parekh’s pay included Rs 18.73 crore in variable pay and Rs 45 lakh in retiral benefits. He took home Rs 71 crore in the previous year ending 2022, which included Rs 52.33 crore worth of stock options exercised.

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Similarly, in FY 2023, Wipro CEO Theirry Delaporte took home a 5% lower salary while chairmanRishad Premji took a 50% cut.

Delaporte, who is also the company’s managing director, received $10 million (Rs 83 crore) in FY23. Within his salary components, variable pay fell 50% to $1.3 million, while long-term compensation benefits more than doubled to $4.17 million.

The only exception to the list is former Tata Consultancy Services (TCS) CEO Rajesh Gopinathan, who received a pay hike. His salary increased to Rs 29.2 crore in fiscal 2023, up 13.2% from the previous year.

In the annual report for the fiscal year 2022-23, TCS said Gopinathan earned over Rs 25 crore as commission, besides asalary of Rs 1.73 crore and Rs 2.43 crore in other benefits.

Gopinathan, who helmed the company for six years till May 31, drew a salaryof Rs 25.76 crore in FY22.

Uncertain times ahead

IT giants, including TCS, Infosys and Tech Mahindra, spoke of demand uncertainty, delays in decision making and even project ramp-downs as they announced their latest quarter results.

Infosys gave a FY24 revenue growth forecast of 4-7%, meaning the company will expand at its slowest pace in six years. It also missed its revenue growth guidance, which came at 15.4%.

HCLTech’s revenue growth, too, was near the lower end of its guided range of 13.5-14.5%.

Earlier this month, JP Morgan reiterated its bearish view on the Indian IT services sector citing demand deterioration and further cuts in consensus estimates. The brokerage placed IT giants Infosys, TCS, and Mphasis under its negative catalyst watch.