Rishad Premji, chairman, Wipro, one of the leading IT companies, has made a significant decision to voluntarily slash his remuneration by nearly 50 percent for the financial year ending in March 2023.
This move demonstrates his commitment to the company and his willingness to contribute during challenging times. Media reports have indicated that his total compensation for this period amounts to $951,353, which is almost half of what he received in the previous fiscal year.
It is noteworthy that this reduction in the Wipro chairman’s compensation marks the first time since the onset of the Covid pandemic that he has taken such a substantial pay cut. During the pandemic, he had already voluntarily reduced his remuneration by 31 percent. In the fiscal year 2019-2020, his compensation amounted to $0.68 million, which was slightly lower than the previous year’s $0.98 million.
In addition to his base salary, Premji is eligible for a commission at a rate of 0.35 percent on incremental consolidated net profits. Alongside Premji, Jatin Pravinchandra Dalal, chief financial officer, Wipro’s has also taken a significant pay cut of nearly 32 percent in his compensation. For the fiscal year 2022-23, Dalal received a total of $1.1 million, compared to $1.6 million in the previous year.
Notably, Wipro recently announced an average variable payout of 80.2 percent for its employees during the fourth quarter of FY23. This demonstrates the company’s commitment to recognizing and rewarding its workforce for their hard work and contributions. Despite the ongoing challenges, Wipro recorded a consolidated net profit of Rs 3,074.5 crore during Q4 FY23, indicating a slight decrease compared to the Rs 3,087.3 crore profit reported in the same period of the previous year.
