HCL’s Vijayakumar is the CEO of India’s Highest-Paid IT Company

BENGALERU : Managing Director of HCL Technologies Ltd, C. Vijayakumar, has obtained 123.13 crore ($16.52 million) last year, with three-quarters of his earnings in long-term benefits, making him the highest-paid boss among Indian software services firms.

Vijayakumar’s annual base salary was $2 million, $2 million in variable compensation and $0.02 million in perquisites and other benefits for the year ended March 31, HCL Technologies, based in Noida, disclosed the remuneration of its chief executive in its annual report released over the weekend.

A long-term incentive (LTI) of $12.50 million, which includes revenue earned over the past two years, brought his total compensation to $16.52 million.

Vijayakumar’s salary of $4.13 million for the fiscal year ending March 2021 did not include LTI, according to the country’s third-largest technology services company.

“There were no changes in his compensation during the 2021-22 financial year, except for the receipt of 12.5 million USD as LTI (long-term incentive) which is paid at intervals fixed (after two years) based on the achievement of milestones/parameters set by the Board of Directors,” the annual report states. “Accordingly, the above LTI payment is for two years ending March 31, 2021, namely $6.25 million for fiscal year 2019-20 and $6.25 million for fiscal year 2020 – 21”.

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How the CEOs of the biggest IT services company are doing

If the $6.25 million LTI earned for the fiscal year ending March 2020 is removed from Vijayakumar’s compensation, his compensation of $10.27 million would be slightly lower than the $10.5 million earned by the CEO. of Wipro Ltd, Thierry Delaporte. Wipro, which posted the strongest revenue growth among its peers last year and ended with $10.3 billion in revenue, paid its boss the highest pay.

Infosys Ltd, which ended with $16.3 billion in revenue, paid CEO Salil Parekh $10.2 million. Rajesh Gopinathan, CEO of Mumbai-based Tata Consultancy Services (TCS) Ltd, was paid the least – $3.3m – by the company which made $25.7bn in revenue last year.

Nasdaq-listed Cognizant Technology Solutions Corp paid $19.6 million to boss Brian Humphries.

One of the reasons for this difference in salaries is that Wipro and Infosys have external CEO candidates, and companies often pay more to bring in executives from outside. Gopinathan, on the other hand, is a veteran of TCS before taking over from N. Chandrasekaran in 2017. Both Parekh and Delaporte are former executives of Capgemini SE, the French IT company. Additionally, Delaporte and Vijayakumar are based overseas: Delaporte is based in Paris, while Vijayakumar is based in New York.

Gopinathan and Parekh work in Mumbai.

An increase in bosses’ pay at IT services companies underlines the performance, as many companies recorded the fastest revenue growth last year in nearly a decade.

The rise in wages also reflects how companies are abandoning their decades-old approach of being a conservative payer.

Vijayakumar has served as the company’s CEO since October 2016, but was not part of the company’s 12-member board. Last year, HCL founder Shiv Nadar stepped down from the board, giving way to Vijayakumar as chief executive.

However, HCL’s annual report did not fully disclose the parameters of variable compensation, a point that made some large shareholders uneasy.

BlackRock, the world’s largest fund manager and which manages $10 trillion in assets, voted against the resolution seeking shareholder approval on Vijayakumar’s compensation last year.

“The terms of compensation and the compensation committee are poorly structured,” Blackrock said on Aug. 20 last year, according to documents reviewed by Mint.

“After further review, RBC GAM has determined that the compensation plan requires improvement and support is not warranted at this time,” said Royal Bank of Canada, which also rejected the resolution. “Namely, we have identified concerns regarding disclosure/transparency of compensation figures and/or performance measures, mismatch between practices and local standards/best practices, relevance of performance measures and disclosures/transparency on the rationale »

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Margie D. Carlisle