BackTCS top management takes pay cut as part of cost optimization measures
Managerial remunerations were decreased for FY20 following cost optimization measuresGopinathan's pay package is 214.65 times the median salary of TCS
PremiumMUMBAI: IT services behemoth Tata Consultancy services (TCS) has said its CEO and MD Rajesh Gopinathan's remuneration shrank 16.5% to ₹13.3 crore in 2019-20 compared to the previous fiscal.
In its annual statement to investors, the Mumbai-based company said managerial remuneration decreased 15% for FY20 following cost optimization measures. The executive remuneration was also moderated in line with these measures.
Gopinathan's pay package is 214.65 times the median salary of TCS. In 2018-19, Gopinathan had received a total remuneration of ₹16.02 crore which was 262 times the median salary of TCS employees.
“The managerial remuneration for the year decreased by 15%. The executive remuneration for FY 2020 is lower than FY 2019 in view of the economic conditions impacted by the COVID-19 pandemic. The Directors have decided to moderate the executive remuneration for this year to express solidarity and conserve resources," the annual report said.
The average annual increase across the company was 6% in India. However, during the course of the year, the total increase is approximately 7.7%, after accounting for promotions and other event-based compensation revisions. Employees outside India received a wage increase varying from 2% to 6%.
COO and executive director N Ganapathy Subramaniam took 13% lower remuneration and CFO V Ramakrishnan took 3.5% cut in his remuneration.
During Q4 results announced last month, the management had noted that that it was kicking in extensive cost optimization measures to conserve financial resources as well as to ensure that employee jobs are protected.
“We are very clear that laying off people is not the approach to deal with the current problem. So we have said currently that there will be no increments and we have moved to freeze future hires although we will honour the 30,000 plus campus offers that we have already made. So, we are taking steps to ensure that the cost base does not expand," Gopinathan told Mint, post Q4 results.
"Our employees are aware of the fact that things will get a lot worse before it gets better but we want employees to have a certainty that we are not looking at retrenchment," he added.
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