Mumbai, June 5: The IT industry’s seems low phase seems to have impacted not just the junior employees, but the ones at the top too. This became evident as IT giant Wipro’s CEO had to receive a 63 per cent pay cut in his annual salary for the financial year 2016-17 (FY17).
Premji’s pay cut comes as India’s third largest software exporter saw a marked slowdown in growth in a protectionist global environment. In FY 17, Wipro’s chairman received a compensation of $108,026 which approximately equates to Rs 71.4 lakh.
Further, the Wipro chairman did not receive any commission for FY17.In comparison, the business tycoon received a salary of $292,991 equating to Rs 1.93 crore in the previous financial year. The salary does not include the company’s contribution to Premji’s provident fund and pension fund accounts, as well as other long-term benefits.
Along with other IT company’s like Cognizant and Infosys, Wipro fired about 600 employees earlier in the year, stating that the employees had failed to meet the company’s required standards during their annual performance review. Further, the company is looking to reduce its workforce by another 10 percent this year.
Azim Premji’s salary came to light after Wipro reported the same to the US Securities and Exchange Commission. In it statement filed with the agency, the IT services company said, “Azim Premji is entitled to a commission at the rate of 0.5 per cent on incremental net profit of Wipro Limited for the financial year 2017 over the previous year. For the year ended March 2017, commission paid to Premji is nil.”
Along with Azim Premji, his son, Rishad Premji, who serves as the chief strategy officer at Wipro, also saw his salary drop by almost 25 per cent, ie from $3,03,198 or Rs 2 crore in FY16 to $233,479 or Rs 1.54 crore in FY 16. However, Chief Executive Officer of Wipro, Abidali Neemuchwala saw a 16 per cent increase in his salary.
Neemuchwala was paid USD 2.09 million during FY 2016-17, which included USD 8,00,000 in salary, USD 1,50,244 in commission, USD 1.13 million for others purposes and USD 9,014 as part of deferred benefits. Premji owns 73.25 per cent stake in Wipro.
The company saw its profits dip by 4.69 per cent to Rs 8,514 crore on revenues of Rs 55,418 crore. Wipro ended 2016-17 with 7% growth in constant currency terms. However, it Q4 performance was slightly better and saw a jump in net profit by 13 per cent to $349 million from $309 million in the preceding quarter.