Rishad Premji, Wipro’s chief strategy officer and board member, mooted the concept of a performance vested stock option plan instead of the current practice of a time vested strategy.
Participating in a panel discussion on the theme – Surviving success: breaking the next growth barrier – at the Nasscom NLF forum here on Wednesday, Premji suggested that even the compensation structure needs to be changed which could have the benefits both from a long and short term perspective.
Wipro currently follows the restricted stock unit (RSU) employee stock option plan which provides these shares to a certain category of executives. On the current disruption in the industry, Premji said organisations need to take their chances and place their bets on certain things.
“It is okay to fail as long as we are servicing the stakeholders and not the shareholders,” he remarked. He felt that the risks taken by the organisation needs to be well communicated to the stakeholders and set the right expectations on what one can expect from the company.
The chief strategy officer of Wipro said they were leveraging various strategies like building intellectual property, creating solutions, investing in startups so as to identify the next growth areas for the company. “We have to build a differentiation and have a certain belief in new ideas,” Premji said.
He strongly felt that automation will be big theme for the IT services industry as large part of the business was getting commoditised.
“If we do not automate then somebody else will bring about the change,” he said.
Automation has become a big theme for Wipro as it is able to employ these technologies in its various service lines thereby freeing up human resources and being utilized in other areas like digital.