BENGALURU: Srini Pallia, Wipro‘s newly-appointed CEO, is set to receive an annual compensation package ranging from $4.5 million to $7 million, as disclosed in the shareholders’ notice posted on the BSE on Monday. Pallia, a 32-year veteran of the company, assumed the role of CEO and MD on April 7 for a five-year term. He succeeds Thierry Delaporte, who departed before his tenure was scheduled to conclude in 2025.
Throughout his career at Wipro, which began in 1992, Pallia has held various key positions, including serving as the president of Wipro’s consumer business unit, global head of business applications services, and most recently, CEO of the strategic market unit known as Americas 1.Pallia will be based in the US and reports to Wipro chairman Rishad Premji.
Pallia’s compensation package comprises a base salary ranging from $1.7 million to $3 million, along with a target variable pay of $1.7 million to $3 million per year. The actual payout of the variable component will be determined by the board of directors based on the achievement of revenue, profit, and other relevant criteria at the organizational level. Additionally, Pallia will be granted stock compensation totalling $4 million, consisting of American Depositary Shares (ADS) restricted stock units (ADS RSUs) valued at $1.4 million and ADS PSUs worth $2.6 million.
The vesting schedule for the $4 million stock awards is spread over three years, with 25% vesting in 2024, 25% in 2026, and the remaining 50% in 2027. The vesting of PSUs will be contingent upon meeting revenue, margin, and free cash flow targets as outlined in the company policy, the stock exchange filing showed. Besides perquisites and benefits, Wipro said the appointment may be terminated by either party by giving notice to the other party of such termination or paying salary in lieu of the notice period. If the agreement is terminated by Pallia, he is required to give prior written notice of six months to the company or pay to the firm six months’ base pay in lieu of the notice. And if the agreement is terminated by the company, Wipro is required to pay Pallia severance pay equivalent to 12 months’ base pay.
In contrast, Delaporte, one of the highest-paid CEOs in the Indian IT sector, saw a slight decrease in his salary to $10 million in the 2023-24 financial year from $10.5 million in the 2022-23 financial year. Wipro’s board has approved a cash compensation payment of $4.3 million to Delaporte, acknowledging his contributions to the company during his tenure as CEO and MD. “The payment is proposed to be made in recognition of Delaporte’s contributions in driving significant transformation at Wipro during his tenure as chief executive officer and managing director, and with a view to enable a smooth transition, ensure business continuity, and to ensure adherence to post-engagement obligations (including, but not limited to, confidentiality, non-solicitation, non-disparagement, and other obligations).”
Throughout his career at Wipro, which began in 1992, Pallia has held various key positions, including serving as the president of Wipro’s consumer business unit, global head of business applications services, and most recently, CEO of the strategic market unit known as Americas 1.Pallia will be based in the US and reports to Wipro chairman Rishad Premji.
Pallia’s compensation package comprises a base salary ranging from $1.7 million to $3 million, along with a target variable pay of $1.7 million to $3 million per year. The actual payout of the variable component will be determined by the board of directors based on the achievement of revenue, profit, and other relevant criteria at the organizational level. Additionally, Pallia will be granted stock compensation totalling $4 million, consisting of American Depositary Shares (ADS) restricted stock units (ADS RSUs) valued at $1.4 million and ADS PSUs worth $2.6 million.
The vesting schedule for the $4 million stock awards is spread over three years, with 25% vesting in 2024, 25% in 2026, and the remaining 50% in 2027. The vesting of PSUs will be contingent upon meeting revenue, margin, and free cash flow targets as outlined in the company policy, the stock exchange filing showed. Besides perquisites and benefits, Wipro said the appointment may be terminated by either party by giving notice to the other party of such termination or paying salary in lieu of the notice period. If the agreement is terminated by Pallia, he is required to give prior written notice of six months to the company or pay to the firm six months’ base pay in lieu of the notice. And if the agreement is terminated by the company, Wipro is required to pay Pallia severance pay equivalent to 12 months’ base pay.
In contrast, Delaporte, one of the highest-paid CEOs in the Indian IT sector, saw a slight decrease in his salary to $10 million in the 2023-24 financial year from $10.5 million in the 2022-23 financial year. Wipro’s board has approved a cash compensation payment of $4.3 million to Delaporte, acknowledging his contributions to the company during his tenure as CEO and MD. “The payment is proposed to be made in recognition of Delaporte’s contributions in driving significant transformation at Wipro during his tenure as chief executive officer and managing director, and with a view to enable a smooth transition, ensure business continuity, and to ensure adherence to post-engagement obligations (including, but not limited to, confidentiality, non-solicitation, non-disparagement, and other obligations).”
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