TCS CEO Krithivasan's compensation at Rs 25 crore, among lowest in IT industry

TCS CEO's salary: Tata Consultancy Services (TCS), the country’s largest IT services firm, disclosed that its CEO, K Krithivasan, earned a total of Rs 25.36 crore in the financial year 2024. The figure positions Krithivasan as potentially the lowest-paid CEO among the top four IT firms.

A significant portion of Krithivasan's compensation is attributed to commissions tied to TCS' annual profit, as stated in the company's annual report. Despite challenges within the $254-billion IT sector, including weak client demand amid recession fears, TCS managed to achieve a 9 per cent increase in profit during the year.

Krithivasan's compensation stands in contrast to his counterparts in other major IT firms. For instance, Infosys CEO Salil Parekh earned $6.76 million in the financial year 2023, while HCLTech CEO C Vijayakumar earned $3.46 million, and Wipro's former CEO Thierry Delaporte received $10 million.

The relatively lower compensation for Krithivasan compared to his peers is attributed to TCS' stable performance and internal leadership continuity. Shriram Subramanian, founder of proxy advisory firm InGovern Research Services, highlighted that TCS has remained a steady ship compared to its peers, who had external CEOs brought in during times of turmoil.

Krithivasan assumed the role of TCS CEO on June 1, 2023, two months into the fiscal year. His compensation also includes the salary for the period of April and May, during which he oversaw the company's banking, financial services, and insurance business.

As of March 31, Krithivasan holds 11,232 shares in TCS, valued at Rs 4.46 crore based on Wednesday's closing price.

TCS' approach to compensation has historically been conservative compared to the market norm, reflecting the Tata Group's values where compensation is not the sole determinant of leadership value. K Sudarshan, managing director at executive search firm EMA Partners, emphasized this aspect of TCS' corporate culture.

Krithivasan's predecessor, Rajesh Gopinathan, had earned Rs 29.16 crore in the fiscal year 2023, providing further context to the compensation landscape within TCS' leadership.

(With Reuters inputs)