Wipro’s Azim Premji’s salary fell 63pc as profits decline

By : |June 5, 2017 0

Wipro Chairman Azim Premji salary saw a huge 63 percent fall at $1,21,853 (about Rs 79 lakh) last fiscal with no commission being paid during the year.

As India’s third-largest software exporter saw a slowdown in profits, it had a direct repercussion on the Premji’s compensation. Premji had drawn a larger compensation of USD 3,27,993 (about Rs 2.17 crore) in the previous fiscal. As per annual filings with the US Securities and Exchange Commission examined by PTI, 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.

“Azim H Premji is entitled to a commission at the rate of 0.5 percent on incremental net profits of Wipro for fiscal 2017 over the previous year… For the year ended March 31, 2017, commission paid to Azim H Premji is INR Nil,” the document said.

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The salary drop for Wipro’s head follows the recent trend that is being witnessed in the industry. Recently, Infosys chief executive officer (CEO) Vishal Sikka saw his pay package coming down by 67 percent to Rs16.01 crore in 2016-17 from Rs 48.73 crore in the previous year.

Wipro saw its net income for the full year decline 4.7 percent over the previous fiscal. Premji, who owns 73.25 percent stake in Wipro, is the only executive who earns a commission on profits. All other executives receive variable pay under a quarterly performance-linked scheme based on key parameters of an individual or combined performance of the business unit, division or segment or the company.

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