COVID Pandemic Year: Salary of TCS CEO Rajesh Gopinathan, COO NG Subramaniam rises by over 50% in FY21

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Top Tata Consultancy Services (TCS) executives’ pay increased 55 percent in FY21 after the company executives took a moderate remuneration in FY20 on the back of the pandemic.

The company CEO Rajesh Gopinathan's remuneration increased 53 percent to Rs 20.4 crore in FY21 compared to 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.

TCS COO NG Subramaniam’s remuneration increased 60 percent to Rs 16 crore in FY21 from Rs 10 crore in FY20. This includes Rs 1.21 crore in salary, Rs 1.9 crore in benefits and allowances and a commission of Rs 13 crore for FY21.

The company executives last fiscal made a decision to moderate their remuneration to conserve resources in FY20. It resulted in a 15 percent decline last year in remuneration for the key executives.

That is why, TCS FY21 annual report said, the remuneration this fiscal cannot be compared to FY20.

Infosys' Salil Parekh drew Rs 34.67 crore in FY20 and Wipro former CEO Abidali Neemuchwala, who resigned in January 2020, was paid Rs 34 crore. The annual package of Thierry Delaporte, CEO, Wipro,  was Rs 37.9 crore (4.45 million euros) and also stock compensation and other benefits. He took charge on July 6, 2020.

On the back of the pandemic, TCS had paused salary hikes for employees to conserve resources due to the outbreak of the coronavirus. However, with the demand coming back, the company announced wage hikes effective October 2020. The company also announced another round of salary increments effective April 2021 thanks to strong growth momentum as clients increase their tech spending.

“During the course of the year, the total increase is approximately 6.4 percent, after accounting for promotions and other event-based compensation revisions. Employees outside India received a wage increase varying from 2 percent to 6 percent. The increase in remuneration is in line with the market trends in the respective countries,” the annual report read.

The company clearly is bullish on the growth opportunity it is seeing in the market, which it expects to sustain in the next few years.

Gopinathan said, “We see this technology shift as the start of a multi-year technology upgradation cycle in which the abundance of native capabilities will constantly expand the art of the possible, opening up new opportunities for technology-driven differentiation.”

N Chandrasekaran, chairman, in a note to shareholders, said TCS sees immense opportunities for growth as it now rides the new technology cycle that has kicked off. As the company looks ahead, TCS would also invest in sharpening the capabilities needed to expand its footprint in this large opportunity, he added.