Wipro new CEO Srinivas Pallia's salary revealed. Details here
Wipro new CEO Srinivas Pallia’s salary revealed. Details here
Srinivas Pallia, the newly appointed CEO and MD of Wipro, is set to receive a maximum compensation of $7 million per year for the first two years of his tenure.
The compensation includes a cash component ranging between $1.75 million to $3 million per annum.
In a filing with the Bombay Stock Exchange (BSE), Wipro also disclosed that the former CEO, Thierry Delaporte, will be paid $4.33 million in cash compensation and applicable social security contributions, after necessary deductions.
Additionally, another exchange filing revealed that Delaporte recently sold all his Wipro shares, totalling approximately 4,72,292 shares, valued at Rs 21.4 crore this month.
According to the company’s filing, Pallia’s basic salary will be between $1,750,000 and $3,000,000 per annum. He will also be eligible for a target variable pay ranging from $1,750,000 to $3,000,000 per year.
The actual payout of Pallia’s compensation will depend on the achievement of organisational targets related to revenue, profit, and other criteria determined by the Board of Directors over time.
Moreover, the new CEO will receive long-term incentives in the form of stock compensation, specifically through the grant of American Depository Shares (ADS) Restricted Stock Units (RSUs) and ADS Performance Stock Units (PSUs) amounting to $4,000,000.
This includes $1,400,000 in ADS RSUs and $2,600,000 in ADS PSUs.
The vesting schedule for these RSUs and PSUs is as follows: 25% on May 2, 2025, another 25% on May 2, 2026, and the remaining 50% on May 2, 2027.
Vesting of PSUs will be contingent upon meeting revenue, margin, and free cash flow targets as per company policy and other criteria set by the Board of Directors.
Pallia’s contract as CEO and MD of Wipro is for a five-year period, effective from April 7, 2024, to April 6, 2029. The BSE filing also outlined the terms for termination, stating that either party may terminate the agreement by providing notice or paying salary in lieu of the notice period.
The termination terms require that if Pallia decides to end the agreement, he must provide the company with six months’ written notice or pay an amount equivalent to six months’ base pay.
Conversely, if Wipro initiates the termination, the company will be obligated to provide Pallia with severance pay equivalent to 12 months’ base salary.
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