Wipro's New CEO Srinivas Pallia Becomes Second Highest Paid CEO In Industry, Guess Who's No.1
Wipro's newly appointed CEO and MD, Srinivas Pallia, is slated to earn an annual compensation of up to $6 million(Rs 50 crore approx) for the first two years of his tenure, as sanctioned by the company's board.?
This move follows the approval of a $4.33 million(Rs 36 crore) payment to former CEO and MD, Thierry Delaporte, who stepped down a year earlier than planned. Pallia assumed leadership following Delaporte's premature exit from the organization.
Srinivas Pallia has worked at Wipro for over three decades.?
Pallia's tenure as CEO and MD of Wipro spans five years, commencing from April 7, 2024, to April 6, 2029, as per the BSE filing. Termination clauses were detailed in the filing, stipulating that either party may end the contract by giving notice or offering compensation in lieu of notice.
If Pallia opts to terminate the agreement, he must furnish the company with a six-month written notice or provide payment equivalent to six months' base salary. Conversely, if Wipro instigates the termination, the company is obligated to furnish Pallia with severance pay equating to 12 months' base salary.
This makes him the second highest paid CEO of the industry. The no.1 position is held by Infosys' CEO Salil Parekh whose yearly remuneration stands at Rs 56 crore annually.?
Breakdown Of Srinivas Pallia's Pay??
According to an exchange filing by the company, Srinivas Pallia's salary includes fixed and variable components. His base salary is anticipated to fall within the range of $1.75 million to $3 million per year, with an additional variable pay of nearly $1.75 million to $3 million annually.
Wipro stated that the total payout will be contingent upon the company's performance relative to predefined metrics.
Srinivas Pallia's compensation package will encompass long-term incentives, with stock compensation amounting to $4 million. This includes $1.4 million in Restricted Stock Units (RSUs) and $2.6 million in Performance Stock Units (PSUs).
Former Wipro CEO Thierry Delaporte¡¯s salary
Thierry Delaporte, the former CEO of Wipro, ranked among the highest-paid CEOs in India last year, with an annual package exceeding ?82 crore, approximately equivalent to $10 million.
"The payment is proposed to be made in recognition of Delaporte¡¯s contributions in driving significant transformation at Wipro during his tenure as CEO and MD, and with a view to enable a smooth transition, ensure business continuity, and to ensure adherence to post engagement obligations," the company said.
Another exchange filing revealed that Delaporte recently sold all his Wipro shares, totalling approximately 4,72,292 shares, valued at Rs 21.4 crore this month.
