TCS CEO Salary Revealed: The high salaries of CEOs continue to be a topic of global discussion. After all, they hold immense responsibility for a company’s day-to-day operations and financial health. Here is the compensation package of TCS’s current CEO, K Krithivasan, as revealed in the latest annual report for 2023-24.
Krithivasan’s total compensation for the year stood at Rs 25.35 crore. This breaks down into a base salary of Rs 1.27 crore (or Rs 10.6 lakh per month), benefits and allowances of Rs 3.08 crore, and a significant performance-based commission of Rs 21 crore.
Interestingly, the TCS annual report clarifies that this compensation reflects his combined role – as Global Head of Banking, Financial Services and Insurance (BFSI) for the initial two months (April-May 2023) and as CEO & MD for the remaining period (June 2023-March 2024).
“The remuneration includes compensation for the full year, i.e. as Global Head of Banking, Financial Services and Insurance (BFSI) for April 1, 2023 to May 31, 2023 and as CEO & MD from June 1, 2023 to March 31, 2024,” according to the Integrated Annual Report 2023-24 released on May 8, 2024.
Krithivasan took over as TCS’s chief executive on June 1, 2023, after Rajesh Gopinathan resigned as the company’s MD and CEO.
Earlier, Krithivasan’s basic salary stood at Rs 10 lakh per month or Rs 1.2 crore a year. According to reports, his monthly salary package in 2018-19 was Rs 4.3 crore.
TCS uses a two-part compensation structure for its managing director and executive directors. It includes a fixed component comprising salary, benefits, perquisites, and allowances, and a variable component based on performance, known as commission. This variable pay directly reflects the company’s financial success.
In the latest financial year 2023-24, the country’s largest IT services company’s COO N G Subramaniam earned a total compensation of Rs 26.18 crore, up 10.98 per cent through the year. It had grown 14 per cent in FY23, according to the latest annual report.
Rajesh Gopinathan, who stepped down as the MD and CEO of TCS in June 2023, received a total compensation of Rs 25.75 crore in a year.
Recently, TCS announced annual salary hikes for its workforce, with top performers receiving double-digit increments. Its Chief HR Officer Milind Lakkad said salary hikes will be in the range of 4.5-7 per cent based on performance, with high-performers receiving double-digit increases.
In the latest March 2024 quarter, Tata Consultancy Services reported a 9.1 per cent growth in its net profit to Rs 12,434 crore. In the fiscal year 2023-24, the company’s net profit grew 9 per cent to Rs 45,908 crore.
On a constant currency basis, TCS revenue jumped 13.5 per cent during the December 2022 quarter.
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