CEO of Wipro Rishad Premji accepts a 20% compensation reduction in FY24 and does not get variable pay

Premji was not paid a commission since the additional consolidated net profits were negative, even though he is entitled to a 0.35 percent fee.

This year, too, Premji did not get any stock options.

For the second year in a row, Wipro Executive Chairman Rishad Premji's commission was withheld from his yearly compensation in FY24 due to the company's negative incremental consolidated net profit.

According to a filing the business made with the US Securities and Exchange Commission, Premji is entitled to a 0.35 percent commission on additional consolidated net profits; but, because it was negative, no commission was due.

Premji also reduced his income by almost 20 percent, bringing his FY24 compensation package down from $951,353 to $769,456. Because of this, his pay dropped from $861,000 to $692,641 from the previous year, as per Wipro's 20-F filings with the US markets regulator.

The salary reduction coincides with Wipro's sluggish growth and revenue drop in the first quarter of FY25, which the company is expecting as a result of a challenging macroeconomic climate. The revenue projection given by the firm for the first quarter ending June 30, 2024, is between (-) 1.5 percent and 0.5 percent.

This year, as well, Rishad Premji, 46, did not get any stock options. In 2019, the son of Wipro's CEO, Azim Premji, assumed the role of chairman for a five-year tenure. His term has been extended for a further five years, ending on July 30, 2029.

For the second consecutive year, Thierry Delaporte, the former managing director and CEO of Wipro, was the highest-paid CEO in the IT sector with earnings of over $20 million (about Rs 166 crore) in FY24.

Delaporte received over $3.9 million in salary and benefits, over $5 million in commissions and variable pay, almost $7 million in other income, and over $4 million in long-term remuneration, according to Wipro's 20-F filings with the US Securities and Exchange Commission.