CP Gurnani, managing director and CEO of Tech Mahindra Ltd received a total remuneration of Rs 150.7 crore ($24.18 million) from the company. Gurnani drew a bulk of the remuneration (Rs 147.17 crore) from the value of stock options. As per the reports by VCCircle, the stock options were granted to him earlier and exercised last year, which means that Gurnani’s total remuneration does not indicate his or the company’s performance during the year. Gurnani’s total compensation for the year ended 31 March 2017 surpassed the pay packet of the entire board of India’s top three IT services firms – TCS, Infosys and Wipro – on most paid executives as public companies.
While calling the compensation as well deserved, Kris Lakshmikanth, founder and CEO of executive search firm Headhunters India, was qouted by VCCircle as saying, “Gurnani joined Tech Mahindra when the company was still a joint venture with British Telecom. He was one of the two employees who were given a generous stock option. The stock price of the firm at that time was just about Rs 30 per share. He successfully turned around Satyam after its merger with Tech Mahindra and the company’s share price has grown multifold. The compensation is well deserved.”
Meanwhile, there has been a significant hike in the remuneration of some of the high-level executives of Indian companies. This includes N Chandrasekaran, the former CEO of TCS, who is now chairman of Tata Sons. Chandrasekaran saw his remuneration rise to Rs 30.15 crore. CEO of Infosys, Vishal Sikka, also took a minor pay cut to Rs 45.11 crore after walking home with a 10-fold hike in pay packet in FY2015-16. Wipro chief, Abidali Neemuchwala too got a pay hike.