Wipro's new chief executive officer Srinivas Pallia is set to receive up to $6 million in annual remuneration in his first year in the corner office. The board of the IT major board also approved a payment of $4.33 million as compensation to former CEO and MD Thierry Delaporte.
On April 6, the software major appointed Srinivas Pallia as the CEO and MD of the company after Delaporte resigned stepped down a year earlier than scheduled.
Pallia's package comprises various components, reflecting both fixed and variable elements, the details of which the company has released in an exchange filing.
Pallia's base salary is expected to range from $1.75 million to $3 million annually. In addition to his core remuneration, Pallia is eligible for a variable pay, which could amount to another $1.75 million to $3 million annually. However, the actual payout of this component depends on the company's performance against predefined metrics, such as revenue and profit targets, Wipro said.
The Bengaluru-based company has granted Pallia long-term incentives in the form of stock compensation. These incentives, totalling $4 million, consist of Restricted Stock Units (RSUs) of $1.4 million and Performance Stock Units (PSUs) of $2.6 million.
These stock units will vest over time, with 25 percent vesting on May 2, 2025, another 25 percent on May 2, 2026, and the remaining 50 percent on May 2, 2027.
Pallia has been with Wipro for over three decades and most recently served as the CEO for Americas 1, Wipro's biggest and fastest-growing strategic market. In this role, he oversaw diverse industry sectors, established their vision, and implemented growth strategies, resulting in increased market shares within these sectors.
Also read: Srinivas Pallia sold Rs 5-crore worth of Wipro shares before taking over as CEO
Former Wipro CEO Delaporte was among the highest-paid CEOs in India last year with over Rs 82 crore in annual package (roughly $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 postengagement obligations," the company said in the release.
Also read: Thierry Delaported: A litmus test for Wipro and Rishad Premji
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