HCL Technologies chief executive officer & managing director C Vijayakumar will get $31.5 million in stock options over five years in addition to an annual compensation of $4.38 million in salary, performance incentives and other benefits, making him one of the highest-paid IT CEOs.
This comes on the back of his elevation as the managing director effective July 20 when founder Shiv Nadar stepped down from HCL. Vijayakumar earned $4.13 million (Rs 30.60 crore) for the year ended March 2021, down 74 percent from the previous year, the FY21 annual report said.
As the CEO & MD, Vijayakumar will be eligible for long-term incentives (LTI), which includes stock options and restricted stock options, to the tune of about $31.5 million for the financial years ending March 2022 till March 2026.
“The parameters and other conditions including the intervals, milestones, tranches to receive the LTI shall be decided by the Board or the NRC which shall be for the financial years ending March 31, 2022 till March 31, 2026. The aggregate LTI for these financial years shall be $ 31,500,000,” the report said.
“Within the aforesaid limit of US $ 31,500,000, the CEO & MD may be granted Stock Options / RSUs in terms of the Company’s Stock Option Plan(s) that may be formulated from time to time, and if the Stock Options / RSUs are so granted, the LTI to the extent of value of Stock Options / RSUs, as determined by the Board, shall stand reduced.”
This is in addition to the base salary of $2 million and performance-linked incentive of up to $2 million each, the report said. This is in addition to the perquisites and other benefits amounting to $384,000 per annum.
While Vijayakumar's salary came down in the quarter and is more likely to be one of the largest paid IT CEOs in coming quarters, his counterpart in Wipro was the highest paid in FY21.
Wipro’s CEO & MD Thierry Delaporte drew Rs 64 crore ($8.8 million) for FY21, making him the highest paid CEO in IT for FY21, compared to his peers in Infosys, HCL Tech and TCS.
Compensation of Delaporte, who took charge as the CEO in July 2020, included a salary of Rs 9.6 crore, commission of Rs 11.2 crore, Rs 5.5 crore as long-term compensation and Rs 37.81 crore as other income, according to a regulatory filing.
When Delaporte was announced as CEO & MD, he was offered an annual package of Rs 37.9 crore (4.45 million euros), stock compensation and other benefits.
Bengaluru-based rival Infosys’ CEO & MD Salil Parekh's salary increased 45 percent to Rs 49.68 crore in FY21, with more than half coming from exercise of the stock options.
Parekh drew Rs 34.27 crore in FY20. The remuneration includes Rs 30.99 crore on account of the exercising of 2.92 lakh restricted stock units under the 2015 Plan and 1 lakh under the 2019 Plan during FY21.
TCS CEO & MD Rajesh Gopinathan's remuneration increased 53 percent to Rs 20.4 crore in FY21 from the previous fiscal. This includes a salary of Rs 1.27 crore, benefits and allowances amounting to Rs 2.09 crore and Rs 17 crore in commission. Gopinathan took home Rs 13 crore in FY20 and Rs 16.04 crore in FY19.
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