Wipro's Premjis forgo variable, CEO Neemuchwala's FY20 pay rises 12%1 min read . Updated: 02 Jun 2020, 10:45 AM IST
- Both Azim and Rishad Premji did not not take the FY20 variable compensation to show solidarity amid the disruptions caused to business activities by the coronavirus and subsequent lockdowns
BENGALURU: Wipro Ltd’s founder Azim H Premji and chairman Rishad A Premji have foregone their variable compensation and profit-linked commission for fiscal 2020 as “a sign of solidarity" amid business uncertainty caused by coronavirus disruptions, which is likely to last for the next few months, according to its 20F filing with the US Securities and Exchange Commission (SEC).
This resulted in Rishad Premji’s total compensation drop by about 31% to $683,496 in FY20, compared to the previous fiscal.
The total compensation includes salary and allowances, variable pay, and long-term compensation benefits. Azim Premji received a total compensation of $135,772 between 1 April–31 July, 2019, when he stepped down as the chairman of the company.
Wipro’s chief executive officer (CEO) Abidali Z Neemuchwala’s pay package rose 12% to $4.42 million in FY20. After resigning on 31 January, Neemuchwala exited the IT services provider on 1 June, giving way to Thierry Delaporte as the new chief.
Infosys’ CEO Salil Parekh drew a pay package of $6.15 million in financial year 2020, a rise of 27% over the previous fiscal.
Wipro said all executives receive 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."
Rishad Premji’s pay included cash bonus (part of his allowances) on an accrual basis, which is payable over a period of time.