TCS top management to take pay cut
IT major Tata Consultancy Services (TCS) has said its CEO and MD Rajesh Gopinathan's remuneration shrank 16.5 percent to ₹13.3 crores in 2019-20 compared to the previous fiscal.
“The managerial remuneration for the year decreased by 15 percent. The executive remuneration for FY 2020 is lower than FY 2019 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.
Gopinathan's pay package is 214.65 times the median salary of TCS. In 2018-19, Gopinathan had received a total remuneration of ₹16.02 crore which was 262 times the median salary of TCS employees.
COO and executive director N Ganapathy Subramaniam took 13% lower remuneration and CFO V Ramakrishnan took 3.5 percent cut in his remuneration.
The average annual increase across the company was six percent in India. However, during the course of the year, the total increase is approximately 7.7 percent, after accounting for promotions and other event-based compensation revisions. Employees outside India received a wage increase varying from two percent to six percent.
During Q4 results announced last month, the management had noted that it was kicking in extensive cost optimization measures to conserve financial resources as well as to ensure that employee jobs are protected.
Gopinath had earlier announced in media that the company is strictly against “laying off people and hence decided ‘no increments’ and ‘no hiring’ as an approach. Although the company respected the 30,000 plus campus offers that it already made.
"Our employees are aware of the fact that things will get a lot worse before it gets better but we want employees to have a certainty that we are not looking at retrenchment," shared Gopinath in media.
"The managerial remuneration for the year decreased by 15 percent. The executive remuneration for FY20 is lower than FY19 in view of the economic conditions. The directors decided to moderate the executive remuneration for this year to express solidarity and conserve resources," according to the IT giant's annual report.