Wipro chairman Azim Premji’s salary fell 63% to about Rs79 lakh in FY17
Wipro chairman Azim Premji’s salary fell to Rs79 lakh in FY17, from about Rs2.17 crore in FY1, as he was not paid any commission during the year
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New Delhi: Wipro chairman Azim Premji’s pay package saw a huge 63% fall at $121,853 (about Rs79 lakh) in fiscal 2017, with no commission being paid during the year. The information technology (IT) czar had drawn a larger compensation of $3,27,993 (about Rs2.17 crore) in the previous fiscal.
Premji’s package included $66,464 in salary and allowances and $41,742 (others) and $13,647 in long-term compensation (deferred benefit—company’s contribution to the provident fund and pension fund), totalling to $121,853 for the year 2016-17, as per documents with the US Securities and Exchange Commission (SEC).
“Azim H. Premji is entitled to a commission at the rate of 0.5% on incremental net profits of Wipro for the fiscal 2017 over the previous year... For the year ended 31 March 2017, commission paid to Azim H. Premji is INR Nil,” the document said. It added that all other executives received variable pay under a quarterly performance-linked scheme, based on key parameters of individual or combined performance of the business unit, division or segment or the company as a whole. In 2015-16, Premji had received a commission of $1,39,634.
There has been a decline in compensation for key executives across the industry and it is reflective of the slow pace of growth for players. Infosys chief executive officer (CEO) Vishal Sikka, for example, saw his pay package coming down by 67% to Rs16.01 crore in 2016-17 from Rs48.73 crore in the previous year.
Wipro saw its net income for the full year decline 4.7% over the previous fiscal. For the fourth quarter, its IT services revenue declined marginally over the October-December quarter. However, Wipro CEO Abidali Neemuchwala’s pay package saw 16% increase to $2.09 million during Financial Year 2016-17, which included $800,000 in salary, $150,244 in commission, $1.13 million (others) and $9,014 (deferred benefits). Neemuchwala was elevated as the CEO on 1 February 2016 from the position of chief operating officer.
The high compensation for leaders in the technology sector also come under spotlight after Infosys founder N.R. Narayana Murthy had questioned pay hikes for senior executives at the Bengaluru-based firm. Rishad Premji, chief strategy officer and Wipro board member, took home a salary of $260,015 in 2016-17 compared to $325,462 in the previous fiscal, a drop of 20%.