India’s fifth-largest IT services company Tech Mahindra’s Chief Executive Officer (CEO) CP Gurnani saw his pay fall by 51 percent in FY23 to Rs 32 crore, primarily on account of the stock options exercised, according to the company’s annual report for FY23 released on June 26. Gurnani’s pay fell from Rs 63.4 crore the preceding year.
Of the Rs 32 crore, Rs 25 crore was on account of ESOPs exercised by Gurnani. He made Rs 2.7 crore as part of this salary and Rs 1.8 crore in commissions. Gurnani made 466.99 times the median remuneration of employees at the company, which stood at Rs 6,62,076.
Overall, the annual report said that employees were given an increase of 6 percent in their pay package (including those overseas). In the same time period, the remuneration of managerial Personnel have decreased by 41 percent. But again, if the stock options exercised part is removed, then the managerial pay has not decreased.
Like Gurnani, some of his peers have also seen a reduction in pay. However, he still earned more than former Tata Consultancy Services CEO Rajesh Gopinathan, who earned Rs 29.16 crore in FY23, an increase of 13 percent year-on-year. Infosys CEO Salil Parekh's earnings fell 21 percent to Rs 56.44 crore, while Wipro CEO Thierry Delaporte’s pay outstripped the others as he made Rs 82.4 crore — a fall of 5 percent in dollar terms.
Gurnani has been at Tech Mahindra’s helm since 2012 and will retire on December 19 as he turns 65. Mohit Joshi, who was a former president at Infosys and joined Tech Mahindra as an Additional Director on June 20, will take over as CEO and MD on December 20.
Mohit Joshi’s pay
Pending shareholder approval, Tech Mahindra’s annual report states that Joshi will receive annual fixed compensation of GBP 622,600 (Rs 6.5 crore), and annual variable compensation also of Rs 6.5 crore. His variable pay in the first year in the first year is guaranteed.
Additionally, he can get an annual overperformance bonus of up to 70 percent of his variable compensation. He is also entitled to a joining bonus of $848,951 (Rs 6.96 crore).
As part of his stock-based compensation, he gets a one-time stock option grant of $2.5 million, 60 percent of which will vest once he finishes a year with the company, and the remaining once he finishes two years. Additionally, he has an annual stock option grant equivalent to $3.5 million vesting in equal instalments over 3 consecutive years of employment, the first instalment vesting after the first year.
Joshi, an Infosys veteran, was the highest-paid employee at the company in FY23, where he earned Rs 57.32 crore. Of this, he earned Rs 38.95 crore from restricted stock units and ESOPs.
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