The steep pay hike comes against the backdrop of the companys good performance in recent quarters, even as many of its peers are grappling with tough business conditions. In a filing to the BSE, TCS said, Taking into consideration the increased business activities and the responsibilities cast on Chandrasekaran, the board has revised the maximum limit of salary of Chandrasekaran from R10,00,000 per month to R15,00,000 per month, with effect from April 1, 2014, for the remainder of the tenure of his appointment i.e. up to October 5, 2014, with proportionate increase in the benefits related to his salary.
The revision in terms of remuneration of Chandrasekaran will come up for approval at TCS 18th Annual General Meeting to be held on June 28, 2013.
Chandrasekaran was first appointed CEO and managing director of TCS for from October 6, 2009, with an initial maximum monthly salary of R6 lakh which was later revised to R10 lakhs in 2011.
During the fiscal ended March 2012, Chandrasekaran had received R8.01 crore including salary, benefits, perquisites and allowances.
TCS reported 22.1% jump in consolidated net profit at R3,597 crore for Q4 2012-13, while for the entire fiscal, net profit rose by 31% to R13,941 crore. The companys revenues increased 24% to R16,430 crore for Q4FY13, while for FY13 it rose by 29% at R62,989 crore on a year-on-year basis.
Infosys paid $1,04,661 in total compensation to executive co-chairman Kris Gopalakrishnan for the 2013 fiscal, which is a 29% decline as compared to $1,47,401 paid last year.
Chief executive SD Shibulal received an annual compensation of $1,04,659 for the same period as against $1,45,876 in FY12, a fall of 28%. This sharp fall in pay packages was on account of cut in the bonus and incentive component.
Industry experts believe that salary packages will be in-line with company performance and cannot be generalised across the IT sector. It is a trend which is reflective on how the company is performing. For example, 3i Infotech has not had an increase in salary across the board because of the issues it was undergoing, said 3i Infotech CEO Madhivanan Balakrishnan.
Some of the hikes are very well justified. But in the overall trend, it would be a very cautious kind of an approach. There will be very low hikes and less hiring. Many companies will increase the variable pay component because it is directly linked to performance, he added. I do not expect any over-the-board hikes except for the companies that are performing exceptionally well.