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rishad premji salary cut: Wipro’s Rishad Premji takes 50% salary cut in FY23

Wipro executive chairman Rishad Premji’s salary reduced by almost 50% in the financial year 2023 compared to the previous years due to the negative performance of the IT services business, according to company filings reported to the exchanges on Thursday.

In FY23, Premji’s salary stood at $951,353, down 47% from $1,819,022 in FY22, the company reported in its annual report to the exchanges as per international financial reporting standards (IFRS) for American depository share holders (ADS).

Premji is entitled to a commission at the rate of 0.35% on incremental consolidated net profits of Wipro Limited over the previous fiscal year, said the report.

“However, in light of the fact that the incremental consolidated net profits for fiscal year 2023 was negative, the Company determined that no commission was payable for fiscal year 2023 to Mr. Rishad A. Premji,” the report informed shareholders.

The report further said that gross profit as a percentage of revenue from the IT Services segment decreased by 94 basis points (bps), primarily due to the increase in employee compensation costs by Rs 7,429.5 crore due to the impact of salary increases.

This included promotions, and increase in headcount, including through acquisitions, incremental subcontracting costs of Rs 607.3 crore, increase in travel expenses by Rs 323.2 crore as Covid-19 travel restrictions were eased and the increase in software license costs for internal use by Rs 407.4 crore.

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His compensation also included a cash bonus (part of his fixed salary).Meanwhile, Wipro CEO and MD Thierry Delaporte’s salary was down 5%. Within his salary components, variable pay was down 50% while long term compensation increased by over 100% during the year.

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