Wipro's Azim Premji takes 63% pay cut as profit dips
05 June 2017
The drop in net profit at India's third-largest IT services exporter Wipro has led to its executive chairman Azim Premji taking home 63 per cent less salary for FY17 compared to a year ago.
He also received no commission during the fiscal year, according to the company's filings with the US Securities and Exchange Commission.
According to SEC filings, Premji's salary for FY17 stood at $1,08,206 as compared to $2, 92,991 in FY16. This salary does not include long-term benefits like provident fund and pension.
Chief strategy officer and board member Rishad Premji also took a 23-per cent cut in salary for FY17 at $2, 33,479 for FY17 as compared to $3, 03,198 in FY16.
Wipro reported net profit of Rs8,489.5 crore for FY17, down 4.69 per cent from FY16.
In its regulatory filings, Wipro is said, ''Azim Premji is entitled to a commission at the rate of 0.5 per cent on incremental net profit of Wipro Limited for the fiscal year 2017 over the previous year. For the year ended March 2017, commission paid to Premji is nil.''
The dip in compensation for key executives of Indian IT companies reflects a lowered growth rate of the sector, Moneycontrol reports.
Infosys chief executive Vishal Sikka also saw a 61-per cent cut in salary over last year at $6.68 million for FY17.
Sikka was eligible for $11-million pay including basic salary, variable pay, restricted stock units (RSUs) and performance stock options for the year. But the company's performance in 2016-17 disappointed the street, especially after it lowered its annual revenue guidance thrice last fiscal.
The IT sector is expected to record only single-digit growth during the current fiscal. The sector has witnessed a slowdown after the change in the regulations on visas by the US government.