Wipro Ltd’s chairman, Rishad Premji, has taken a pay cut of approximately 50% for the fiscal year ending in March 2023. This marks the first decline in pay since the pandemic began. According to Wipro’s filing with the US Securities and Exchange Commission (SEC), Premji’s earnings amounted to $951,353 in FY23, as compared to $1,819,022 in FY22. This was due to the fact that the company’s incremental consolidated net profit was negative, which resulted in him not receiving any commission or stock options. In contrast, Wipro CEO Thierry Delaporte received a salary of over $10 million in FY23. Premji joined Wipro in 2007 and became a member of the board in May 2015. He was the chairman of the company for five years until July 31, 2019.
Wipro’s Financial Performance
Wipro’s SEC filing comes against the backdrop of the IT major’s net profit falling 7.16% YoY to INR 11,366.50 crores, representing a 14.4% increase in revenue to INR 23,190.30 crores. The current fiscal year also looks challenging, with analysts predicting a decline in revenue for India’s $245 million IT sector, at least in the first half of the fiscal year.
Rishad Premji’s Background
As the son of Wipro Ltd’s founder and Chairman Emeritus, Azim Premji, Rishad Premji has been associated with the company for over a decade. He was the Chief Strategy Officer of Wipro, where he led the firm’s mergers and acquisitions strategy and founded Wipro Ventures, a $250 million fund for startups. He became the chairman of the company in July 2019.
Impact of the Pandemic on Salaries
The pandemic has had a significant impact on executive pay. Many companies have imposed pay cuts as a result of the economic slowdown. The IT industry has also faced challenges, as several companies have struggled to maintain their growth trajectory due to a decline in demand from their clients. In this context, it is not surprising that Rishad Premji’s salary has been impacted.
Wipro’s Outlook
Wipro is a leading provider of IT services, consulting, and business solutions. The company operates in more than 50 countries and has a workforce of over 180,000 employees. It offers a broad range of services, including digital transformation, cloud computing, cybersecurity, and data analytics. Despite the challenges posed by the pandemic, Wipro is optimistic about the future and is focusing on expanding its capabilities in areas such as AI, automation, and cybersecurity. The company is also pursuing opportunities in emerging markets such as Africa, where it recently opened a new innovation center.
Conclusion
The pay cut taken by Wipro Ltd’s chairman, Rishad Premji, highlights the impact of the pandemic on executive salaries in the IT industry. As a leading provider of IT services, Wipro faces several challenges in the current fiscal year. However, the company is optimistic about its prospects and is focused on expanding its capabilities in emerging areas such as AI and automation. With a strong track record of innovation and a talented workforce, Wipro is well-positioned to navigate the challenges of the current environment and emerge stronger in the future.
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