K Krithivasan, CEO, Tata Consultancy Services (TCS), who was appointed to this role following Rajesh Gopinathan’s resignation in June 2023, reportedly earned Rs 25 crore in the last financial year, as per the Indian multinational’s annual report. As he was initially global head-banking, financial services and insurance (BFSI) before taking on responsibilities of CEO & MD, his total compensation combines the salaries of both roles. The base salary was Rs 1.27 crore, translating to Rs 10.6 lakh per month, with other allowances and benefits totaling Rs 3.08 crore. Additionally, he earned Rs 21 crore in performance-based incentives.
The compensation for managing director and executive directors at TCS has two components. While the salary along with benefits, perks and allowances make up the fixed component, there is also a variable component, comprising commissions given on the basis of performance. The variable pay is determined by the IT services company’s financial performance and achievements.
Interestingly, in April 2024, TCS had introduced a new policy tying employees’ quarterly variable pay to their in-office attendance. Now, employees with attendance below 60 per cent will be ineligible for the bonus. This rule was implemented following the company’s decision to require employees to work from the office five days a week.
The net profit of the company went up to Rs 12,434 crore in the March 2024 quarter. For the financial year 2023-24, TCS posted net profit of Rs 45,908 crore, that is, a growth of nine per cent.
