Wipro shareholders approve Delaporte's $4.33-million severance package

Wipro CEO Thierry Delaporte

Wipro shareholders have approved the $4.33-million severance package of former chief executive officer and managing director Thierry Delaporte with over 90 percent votes in favour, according to data from the BSE.

Only about 10 percent of the valid voted were cast against the resolution. Wipro's founder-chairman Azim Premji and entities related to him control a majority of the shares in the company, which helped the resolution pass through.

Delaporte resigned on April 6, and the company appointed a veteran for 32 years, Srinivas Pallia, in his place.

The company incurred severance-related costs of Rs 92.1 crore towards the outgoing CEO for FY24.

According to the latest shareholding pattern, the Bengaluru-based company's promoter and promoter group held over 380 crore shares, or almost 73 percent of the total shares. The number of shares held by the public is a little over 141 crore, which accounts for 27 percent of the total shares.

For the resolution, over 45 crore shares were in assent for the resolution as a percentage of net valid votes, while over 393 crore shares were in dissent.

Delaporte earned over $20 million (approximately Rs 166 crore) in FY24, which made him the highest-paid CEO in the IT industry for the second year in a row.

According to Wipro’s 20-F filings with the US Securities and Exchange Commission, Delaporte earned over $3.9 million as salary and allowance, over $5 million as commission/variable pay, almost $7 million classified as others, and over $4 million as long-term compensation.

Delaporte’s successor Pallia will receive an annual remuneration package of approximately Rs 50 crore, which is the second-highest among CEOs in the Indian information technology industry for FY25.