Mumbai: The Indian IT industry is likely to witness a demand for payhike for top bosses and senior and mid-level executives as the sector scrambles for good talent, said Institutional Investor Advisory Services.
According to the advisory firm, Dr Vishal Sikka as managing director and CEO of Infosys gets an annual remuneration of a maximum of $7.08 million (Rs 42.8 crore), whereas the top bosses of the other IT companies are still low.
“It won’t be long before this sparks of a demand for a rise in remuneration not only within Infosys but within the IT industry and India Inc. It is a fight for talent,” said Amit Tandon, managing director, IiAS.
The IiAS points out that TCS’ N. Chandrasekaran MD and CEO who presides over a company whose total income is Rs 83,450 crore and has a net profit of Rs 19,160 crore gets an annual remuneration of Rs 19 crore.
Wipro’s T.K. Kurien who presides over a company with an income of Rs 45,350 crore and a net profit of Rs 7,950 crore gets an annual remuneration of Rs 65 crore but Infosys’ Dr Vishal Sikka who will preside over a company whose total income is Rs 52,800 crore and net profit Rs 10,660 crore will be getting an annual remuneration of Rs 42 crore,” the report said.
Mr Tandon, said the “broader concern with the proposed remuneration is that it is high, compared not just to other Indian IT peers, but corporate salaries in general. This will put pressure on companies to increase their CEO compensations. “He however hoped that the Mr Sikka level remuneration would not be repeated and said “wages have a way of inflating themselves.”
IiAS however stresses that over 80 per cent of Mr Sikka’s total remuneration (including restricted stock) is variable and based on target achievement. “This is a good remuneration practice as it establishes a strong linkage between remuneration and company performance,” it said.
