TCS CEO’s Salary Revealed: The compensation of CEOs often sparks global debate due to the significant responsibility they bear for a company’s operations and financial well-being. The latest annual report for 2023-24 sheds light on the compensation package of TCS’s current CEO, K Krithivasan.
Krithivasan’s total compensation for the year amounted to Rs 25.35 crore. This comprises a base salary of Rs 1.27 crore, benefits and allowances totaling Rs 3.08 crore, and a substantial performance-based commission of Rs 21 crore.
An interesting aspect revealed in the TCS annual report is that this compensation reflects Krithivasan’s dual role. He served as the Global Head of Banking, Financial Services, and Insurance (BFSI) for the initial two months (April-May 2023) and then assumed the position of CEO & MD for the remainder of the period (June 2023-March 2024).
According to the Integrated Annual Report 2023-24 released on May 8, 2024, “The remuneration includes compensation for the full year, i.e., as Global Head of BFSI from April 1, 2023, to May 31, 2023, and as CEO & MD from June 1, 2023, to March 31, 2024.”
Krithivasan assumed the role of TCS’s chief executive on June 1, 2023, succeeding Rajesh Gopinathan, who resigned as the company’s MD and CEO.
Previously, Krithivasan’s basic salary was Rs 10 lakh per month or Rs 1.2 crore annually. Reports indicate that his monthly salary package in 2018-19 was Rs 4.3 crore.
TCS employs a two-part compensation structure for its managing director and executive directors, consisting of a fixed component (salary, benefits, perquisites, and allowances) and a variable component (performance-based commission), directly tied to the company’s financial performance.
In the latest financial year 2023-24, TCS’s COO N G Subramaniam earned a total compensation of Rs 26.18 crore, marking a 10.98% increase over the year. This follows a 14% growth in FY23, as stated in the latest annual report.
Rajesh Gopinathan, who stepped down as MD and CEO of TCS in June 2023, received a total compensation of Rs 25.75 crore during the year.
TCS recently announced annual salary hikes for its workforce, with top performers receiving double-digit increments. Milind Lakkad, Chief HR Officer, mentioned that salary hikes would range from 4.5% to 7% based on performance, with high performers receiving double-digit increases.
In the March 2024 quarter, Tata Consultancy Services reported a 9.1% growth in net profit, amounting to Rs 12,434 crore. For the fiscal year 2023-24, the company’s net profit grew by 9% to Rs 45,908 crore.
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