TCS to pay Rs8 crore commission to Ratan Tata

The board of IT major Tata Consultancy Services (TCS) has decided on a Rs8-crore payment by way of commission to Tata group chairman Ratan Tata for financial year 2012, around Rs6 crore more than what he was paid in FY'11.

TCS paid Rs2.4 crore as commission to Tata for FY'11, according to the annual report of the company.

The commission is decided each year by the board of directors and distributed amongst the non-executive directors based on their attendance and contribution at the board and certain committee meetings.

The company which is the largest software exporter in the country posted a healthy 21.9 per cent rise in net profit for 2011-12 at Rs10,638.2 crore. It said, it was on track to outperform the industry revenue growth of 11-14 per cent set by industry body Nasscom for 2012-13.

The company also achieved the milestone of becoming the first  Indian IT company to cross $10 billion dollar revenues grossing annual revenues of $ 10.17 billion in 2011-12.

According to the report, the board of directors also considered the time spent on operational matters other than at meetings for determining the commission.