Wipro's New CEO Srinivas Pallia's Maximum Pay Package Hits $6 Million Mark

Srinivas Pallia was appointed CEO and MD of the software major on April 6, following Thierry Delaporte's early resignation a year ahead of schedule.

Wipro's new chief executive officer, Srinivas Pallia ( Image Source :LinkedIn )

In his first year as Wipro's new chief executive officer, Srinivas Pallia is poised to receive a substantial annual remuneration package of up to $6 million. This compensation was approved by the board of directors of the IT giant. Additionally, the board sanctioned a payment of $4.33 million as compensation to the former CEO and Managing Director, Thierry Delaporte.

Thierry Delaporte ranked among the highest-paid CEOs in India last year, commanding an annual package exceeding Rs 82 crore, approximately equivalent to $10 million.

Srinivas Pallia was appointed CEO and MD of the software major on April 6, following Thierry Delaporte's early resignation a year ahead of schedule. Pallia's compensation package encompasses various components, incorporating both fixed and variable elements, and the company disclosed the specifics in an exchange filing.

Pallia's base salary is anticipated to fall within the annual range of $1.75 million to $3 million. Apart from his fundamental compensation, Pallia is entitled to a variable pay, potentially ranging from an additional $1.75 million to $3 million annually. However, Wipro clarified that the disbursement of this portion hinges on the company's performance on the predetermined benchmarks, including revenue and profit objectives.

The company headquartered in Bengaluru has awarded Pallia with long-term incentives in the form of stock compensation. These incentives total $4 million, comprising Restricted Stock Units (RSUs) valued at $1.4 million and Performance Stock Units (PSUs) valued at $2.6 million.

The stock units granted will mature gradually, with 25 per cent vesting on May 2, 2025, another 25 per cent on May 2, 2026, and the remaining 50 per cent on May 2, 2027.

Pallia has worked for Wipro for over thirty years, culminating in his recent role as CEO for Americas 1, which is Wipro's largest and most rapidly expanding strategic market. During his tenure, he directed various industry sectors, shaping their vision and executing growth strategies that led to augmented market shares across these sectors.

"The payment is proposed to be made in recognition of Delaporte’s contributions in driving significant transformation at Wipro during his tenure as CEO and MD, and with a view to enable a smooth transition, ensure business continuity, and to ensure adherence to postengagement obligations," the company said in the release.