The executive remuneration for FY2020 is lower than FY2019 in view of the economic conditions impacted by the COVID-19 pandemic. The directors have decided to moderate the executive remuneration for this year to express solidarity and conserve resources.
Pay package of Tata Consultancy Services CEO and MD Rajesh Gopinathan shrank more than 16 per cent to Rs 13.3 crore in 2019-20 compared to the previous fiscal, according to the company's annual report.
In 2018-19, Gopinathan had received a total remuneration of Rs 16.02 crore.
According to TCS' annual report for 2019-20, Gopinathan received Rs 1.35 crore in salary, Rs 1.29 crore in perquisites, Rs 10 crore in commission (at 0.02 per cent of profit) and Rs 72.82 lakh in allowances.
In the previous year, Gopinathan had received Rs 1.15 crore in salary, Rs 1.26 crore in perquisites and Rs 60.35 lakh in allowances.
However, he had drawn a higher commission of Rs 13 crore in 2018-19 at 0.03 per cent of profit.
"The managerial remuneration for the year decreased by 15 per cent.
“The executive remuneration for FY2020 is lower than FY2019 in view of the economic conditions impacted by the COVID-19 pandemic.
“The directors have decided to moderate the executive remuneration for this year to express solidarity and conserve resources," the annual report said.
TCS COO N Ganapathy Subramaniam also took home a smaller pay package in FY2020.
His earnings declined by 12.9 per cent to Rs 10.11 crore in 2019-20 on account of lower commission as compared to Rs 11.61 crore in the previous fiscal.
Ramakrishnan V, TCS chief financial officer, took home a Rs 3.98 crore-package in FY2020.
The Mumbai-based company said the average annual increase was six per cent in India.
"However, during the course of the year, the total increase is approximately 7.7 per cent, after accounting for promotions and other event-based compensation revisions.
“Employees outside India received a wage increase varying from 2 per cent to 6 per cent," the report said.
The increase in remuneration is in line with the market trends in the respective countries, it added.
The report said the percentage increase in the median remuneration of employees in FY2020 was 2 per cent.
TCS' permanent employee base was at 4.48 lakh at the end of 2019-20 fiscal.
Photograph: Danish Siddiqui/Reuters