Our Bureau Mumbai, June 3:
Tata Consultancy Services has rewarded its top executives for the company’s stellar performance in 2013-14 with fatter pay packages.
The total remuneration paid by the company to Vice Chairman S Ramadorai and Chief Executive Officer N Chandrasekaran went up by 272 per cent and 60 per cent, respectively, according to data in the TCS annual report for 2013-14.
Chandrasekaran’s overall pay package went up to â‚¹18.7 crore from â‚¹11.7 crore in 2012-13, making him the highest paid CEO of the Indian software services industry. The actual ‘salary’ payout for Chandrasekaran was around â‚¹10.9 lakh per month (â‚¹1.3 crore for the full year) in 2013-14.
However, the bump in overall pay was due to increase in commissions — generally tied to the performance of the company. Commissions paid to Chandrasekaran increased by 66 per cent to â‚¹15 crore (â‚¹9 crore).
The company had earlier increased Chandrasekaran’s maximum salary limit by 50 per cent to â‚¹15 lakh a month with effect from April 1, 2014, to “compensate for the additional business activities and responsibilities.”
“TCS has been consistently outperforming for the last few years now, not only on revenue parameters but also other matrices such as client satisfaction and employee retention. Hence, bonuses or commissions make up for the most in the compensation spike for those who bring in the revenue at the company,” said Sunil Goel, Director of executive search firm GlobalHunt.
Executive compensation at TCS has been going up since the last three years with the company managing to widen the gap with competition. For 2013-14, the country’s largest software exporter reported a 38 per cent rise in net profit. For the current fiscal, the TCS management has indicated that the company would grow faster than industry body Nasscom’s prediction of 12-14 per cent.
Ramadorai, who had become the non-executive Vice Chairman of the company in 2009, saw his overall compensation go up to â‚¹8.21 crore from â‚¹2.51 crore in 2013-14.
The other non-executive directors at TCS, barring company and group chairman Cyrus Mistry, got an increase of between 24 and 65 per cent in remuneration