In a major pay cut in the technology sector, technology giant Tech Mahindra is said to have slashed the salary of the company CEO and MD, CP Gurnani by as much as 33%. According to the company’s latest annual report, Gurnani received Rs 22 crore in salary in the last fiscal, down from Rs 33.2 crore in the fiscal before that.
As per the report, Gurnani’s compensation includes Rs 2.7 crore in salary, about Rs 9 crore in perquisites, and Rs 1.7 crore in commissions. He was also eligible for trade payables of Rs 1.8 crore.
So far it is not clear what the remaining component of the salary is, though it is likely to be mostly stock compensation benefits.
Meanwhile, experts believe that part of the decline would be due to the company’s top management decision in the first quarter of last year to not take their bonus/ variable pay as part of an effort to deal with the financial impact of the Covid-19 pandemic outbreak.
The company is in its silent period and declined to provide any details. As per estimates, other tech majors like Infosys CEO Salil Parekh earned Rs 49 crore last fiscal, while TCS chief executive Rajesh Gopinathan’s annual salary rose by 54% to more than Rs 20 crore.
Significant differences often arise from year to year on account of changes in stock vesting schedules.