Wipro chairman Rishad Premji took a nearly 50 per cent cut in his compensation in 2022-23 as he did not receive any commission because the incremental consolidated net profits of the company turned ‘negative’ in the year.
This disclosure was made by the Bangalore-based firm in its Form 20-F filing with the US Securities and Exchange Commission (SEC).
During the fiscal, his total compensation stood at $951,353 compared with $1,819,022 in the previous year, of which his salary and allowances came down to $861,620 from $1.1 million in 2021-22. While he did not draw any commission, in the previous year, he was paid a commission of $634,487 in 2021-22.
Wipro said in its filingthat Premji is entitled to a commission at the rate of 0.35 per cent on incremental consolidated net profits of the company over the previous fiscal year.
“However, in the 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 Rishad A Premji,’’ Wipro added.
In 2022-23, Wipro had posted a net profit (attributable to shareholders) of Rs 11,350 crore against Rs 12,219 crore in the preceding year, a drop of 7.11 per cent.
Rishad Premji has been the executive chairman of the company since July 31, 2019.
He had joined Wipro in 2007 and worked in several roles before becoming a member of the board in May 2015. Prior to being appointed as the chairman, he was the chief strategy officer, responsible for shaping Wipro’s strategy to drive sustained and profitable growth.
Wipro’s filing showed CEO Thierry Delaporte receiving a total compensation of $10,026,942 in 2022-23 which was lower than $10,519,174 in the previous fiscal. Similarly, Jatin Dalal, its chief financial officer, drew a salary of $1.08 million compared with nearly $1.6 million in the preceding year.
The company, which declared its results last month, had posted a 0.4 per cent decline in its consolidated net profit to Rs 3,074.5 crore. It also guided for a 1-3 per cent sequential decline in revenue from IT services business in the April-June quarter amid a weak macro environment.
At its board meeting, the directors had announced a share buyback of up toRs 12,000 crore through the tender offer route, which would entail the purchase of 26.96 crore equity shares at a buyback price of Rs 445 per share.
Speaking at a concall after the results, Delaporte had exuded confidence about the company winning large deals.
Shares of Wipro on Thursday ended at Rs 394.20 on the Bombay Stock Exchange, a drop of 1.35 per cent, or Rs 5.40, over the last close.
