TCS CEO’s Rs 26.5 Crore Pay Draws Ire Amid Massive Layoffs Announcement

According to the company’s report, Krithivasan's package included a base salary of Rs 1.39 crore, benefits and allowances amounting to Rs 2.12 crore, and a commission of Rs 23 crore

Other senior executives at TCS were also rewarded with substantial pay packages

Source : PTI

Tata Consultancy Services (TCS), the IT services company, has revealed in its FY25 annual report that its Chief Executive Officer, K. Krithivasan, earned a total annual compensation of Rs 26.5 crore. This reflects a 4.6 per cent increase compared to the previous fiscal year.

According to the company’s report, Krithivasan's package included a base salary of Rs 1.39 crore, benefits and allowances amounting to Rs 2.12 crore, and a commission of Rs 23 crore. Despite the performance-based nature of the earnings, the pay disparity sparked discussions across social media and professional circles.

Leadership Payouts And Board Compensation

Other senior executives at TCS were also rewarded with substantial pay packages. Former Chief Operating Officer NG Subramaniam received Rs 11.55 crore until his departure in May 2024. His pay structure included Rs 30 lakh in salary, Rs 7.24 crore in benefits, and Rs 4 crore in commission.

Among the board members, Hanne Sorensen and Pradeep Kumar Khosla were each paid Rs 2.74 crore. Independent director Keki Mistry received Rs 3.06 crore, which included Rs 3 crore in commissions and Rs 5.7 lakh as sitting fees. TCS Chairman N. Chandrasekaran received Rs 2.1 lakh in sitting fees but opted not to draw a commission.

Layoffs Raise Questions Amid AI-Led Transformation

The financial disclosures come against the backdrop of TCS announcing the layoff of around 12,261 employees, roughly 2 per cent of its global workforce. The move predominantly affects middle- and senior-level roles. The company attributed the layoffs not to cost-cutting or automation, but to a mismatch between existing roles and the company’s evolving business requirements.

One of the biggest Indian IT firms stressed that the firm is undergoing a significant operational shift driven by the large-scale adoption of artificial intelligence (AI) and emerging technologies. As client demands evolve, the company is recalibrating its workforce to better align with future needs.