The annual compensation of Wipro chairman Azim Premji declined 55% in FY15 while that of CEO TK Kurien rose 35%...
The annual compensation of Wipro chairman Azim Premji declined 55% in FY15 while that of CEO TK Kurien rose 35%, according to a US SEC filing by the IT major.
Premji, the third-richest Indian, received a total compensation of $6,73,921 for FY15, including salary, commission and others and excluding long-term benefits, compared to $1,51,0943 in FY14. He holds 73.39% in the company along with his family members and related trusts.
On the decline in Premji’s total compensation, Wipro stated, “The major change in the remuneration of Mr Premji in FY15 compared to previous year is a drop in commission/variable pay. Commission is computed based on a fixed percentage of incremental profits on our standalone financials. The incremental profits for FY15 were lower compared to the previous year, largely impacted by currency fluctuations.”
The filing said Premji was paid a commission of 0.3% on Wipro’s incremental net profit over the previous year, computed via the method approved by the Board Governance, Nomination and Compensation Committee and in accordance with the provisions of the Companies Act, 2013 (the “Companies Act, 2013”). All other executives received variable pay under a quarterly performance-linked scheme based on key parameters of individual or combined performance of the business unit, division or segment or the company as a whole, the filing stated. On the other hand, Kurien received a total compensation of $13,88,676 in FY15 including salary, commissions and others and excluding long-term benefits.