Cognizant CEO was set to earn $19 million, but took home $10.7 million

Cognizant CEO Ravi Kumar S was set to receive a $19 million compensation package for 2025, but his realised earnings stood at $10.7 million, according to a recent filing with the US Securities and Exchange Commission.

The target pay marked an 18% increase from $16.1 million in 2024. However, the actual payout reflected only a portion of the total compensation structure, which includes performance-linked and stock-based components.

Gap driven by stock-linked payouts

The difference between the headline pay and realised earnings stems largely from deferred equity awards. According to the SEC filing cited by Financial Express, a significant part of Kumar’s compensation is tied to performance stock units that will vest in future periods, subject to meeting performance criteria.

The filing noted that his realised compensation was lower than the target primarily because these stock grants are scheduled to vest over time rather than being paid out immediately.

Pay rises year on year

Despite the gap, Kumar’s realised pay of $10.7 million represents a 30% increase from $8.2 million in 2024, underscoring a rise in overall compensation. His SEC-reported total compensation stood higher at $21.5 million, up 28% year on year, reflecting the accounting value of stock-based awards.

A breakdown of the realised pay shows a base salary of $1.3 million, up 9.2%, along with an annual cash incentive payout of $4.39 million, which was 169% of the target. He also received restricted stock awards worth about $4.99 million, according to Financial Express.

Wider context on pay and workforce

The filing also highlighted a widening gap between executive and employee pay. The CEO-to-median employee pay ratio rose to 477:1, compared to 378:1 in the previous year. Median employee compensation increased marginally to $45,138 from $44,500.

As of December 31, 2025, Cognizant employed about 351,600 people globally, including 256,900 in India and 41,600 in North America.

Business performance supports compensation rise

The company attributed the increase in compensation to improved business performance under Kumar’s leadership. Cognizant reported revenue of $21 billion in 2025, marking a 7% growth.

In a letter to shareholders cited in the report, Kumar said the company is focusing on building AI-driven solutions to help clients scale adoption and create long-term value.

With a larger share of compensation tied to performance and future stock vesting, the structure reflects a continued shift towards long-term incentives, linking executive pay more closely to sustained business outcomes.