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Business News/ Companies / News/  India's largest IT firm TCS paid 30 crore salary to former CEO Rajesh Gopinathan in FY23, sees 118% jump in 3 years

India's largest IT firm TCS paid ₹30 crore salary to former CEO Rajesh Gopinathan in FY23, sees 118% jump in 3 years

Former TCS CEO Rajesh Gopinathan's salary increased by nearly 13.2% YoY to around ₹30 crore in FY23, while his salary spiked almost 118% in three years.

In March this year, Gopinathan resigned from his post as CEO and MD at TCS pursue other interests.   (Aniruddha Chowdhury/Mint)Premium
In March this year, Gopinathan resigned from his post as CEO and MD at TCS pursue other interests. (Aniruddha Chowdhury/Mint)

India's largest IT firm in terms of market share, Tata Consultancy Services (TCS) paid approximately 30 crore to its former CEO Rajesh Gopinathan in the financial year FY23. This is an increase of nearly 13.2% on year-on-year basis. But Gopinathan who resigned from his chief executive post earlier this year, has seen his salary spike to nearly 118% in a span of 3 years.

As per the annual report for FY23, TCS revealed that Rajesh Gopinathan earned a salary of 1.73 crore, while his benefits, perquisites and allowances stood at 2.43 crore. While he earned a commission of 25 crore. Overall, he took home around 29.16 crore in FY23.

In FY22, Gopinathan's salary was at 2,5.77 crore, while he earned around 20.37 crore in FY21 and 13.38 crore in FY20.

From 2019-20 to 2022-23, Gopinathan's salary skyrocketed by at least 117.94% in 3 years.

Read here: Former TCS CEO Gopinathan's pay jumped 13% in FY23, Infosys' Parekh's pay dropped 21%; check details

In March this year, Gopinathan resigned from his post as CEO and MD at TCS pursue other interests. He has been replaced by K. Krithivasan who has over a three-decade of experience with the company and in the overall IT sector as well. The new CEO took charge at TCS from June 1, 2023.

However, Gopinathan is not the one who received the highest hike on the TCS board of directors. It would be N G Subramaniam who received a 14.08% hike in FY23 in payscale, the highest among other board members.

N G Subramaniam who serves as chief operating officer and executive director at TCS, took home a salary of 23.60 crore in FY23. He also holds the highest number of equity shares in TCS among other board members with 1,97,760 equity shares.

Gopinathan has merely 2,760 equity shares in TCS as of March 31, 2023.

Despite TCS being the largest tech company in India in terms of market share, Gopinathan's salary was far lower compared to other IT firms' CEOs.

In its annual report for 2022-23, Infosys showed that its current CEO Salil Parekh earned a total fixed salary of 7.12 crore, bonus/incentives of 18.73 crore, and 30.60 crore as perquisites on account of stock options exercised. In total, Parekh took home 56.45 crore in the fiscal.

Other IT companies like HCL Tech, Wipro, and Tech Mahindra are yet to announce their annual report for FY23.

Read here: TCS to HCL Tech: Why you should buy IT stocks before RBI MPC meeting outcome

However, in FY22, HCL Tech's CEO C Vijayakumar became the highest-paid chief executive officer as he earned around $16.52 million (about 130 crore). He bagged $2 million as base salary, $2 million as performance-linked incentives, $12.50 million in long-term incentives, and $0.02 million as perquisites.

Further, Wipro's Thierry Delaporte received a gross remuneration of nearly 79.81 crore in FY22. Also, Tech Mahindra's chief CP Gurnani earned 63.4 crore.

Overall, at TCS, during FY23, the percentage increase in the median remuneration of employees in the financial year is 5.11%.

As per the annual report, in FY23, the average annual increase was in the range of 5-8% in India. However, during the course of the year, the total increase is in the range of 6-9%, after accounting for promotions and other event based compensation revisions. Employees outside India received a wage increase varying from 1.5 to 5.5%.

As of March 31, 2023, TCS has 6,14,795 permanent employees.

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Updated: 07 Jun 2023, 09:59 PM IST
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