Wipro Chief Azim Premji’s compensation drops by 63% this year
Owing to Wipro’s relatively substandard performance, Azim Premji’s compensation dropped by 63% for the year 2016-17 as he took nil commission for the said year. Last year, he drew a huge compensation of about USD 3,27,993 with a commission of USD 1,39,634.
Azim Premji who is entitled to a commission rate of 0.5% on incremental rate profits, failed to take away any commission this year since the net profit of the company dropped by 4.7% to $1.3 billion in 2016-17.
As per the media reports, the documents with the US SEC suggests, Premji’s package included USD 66,464 in salary and allowances and USD 41,742 (others) and USD 13,647 in long-term compensation (deferred benefit - company’s contribution to the Provident Fund and Pension Fund), totalling to USD 121,853 for the year 2016-17.
This decline in company’s performance has also impacted other top executives of Wipro. Rishad Premji, chief strategy officer, and Wipro Board Member received a salary of USD 2,60,015 in 2016-17 compared to USD 325,462 in the previous fiscal. Former vice-chairman T K Kurien who retired in January this year, saw his compensation drop to $1.49 million, from $2 million in the year before, after his variable pay fell to $144,403, from $376,553. However, Wipro CEO Abid Ali Neemuchwala who saw a drop in his package last year, this year his compensation rise to 15.71% to USD 2.09 million, because of stock options.