Rishad Premji, the Chairman of Wipro has taken an almost 50% pay cut for the financial year 2023, says the latest filing made to the Securities and Exchange Commission in the US. He had received a salary of $1,819,022 in the last fiscal year. However, Rishad took a 50% pay cut and received a total package of $951,353 for the financial year ending March 2023.
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As per Form 20-F proposed by the company, Premji got $861,620 as salary and allowances, $74,343 in long-term compensation benefits, and $15,390 in other incomes. Apart from his annual compensation, Premji also got a commission at the rate of 0.35% on incremental consolidated net profits.
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As the incremental consolidated net profits for the fiscal year 2023 were not good, he was not entitled to commission this year. His compensation also included a cash bonus, a part of his fixed salary. However, there were no stock options given to him in the fiscal year 2023.
As per a report, this is not the first time when Wipro’s executive chairman took a salary cut. In fact, he also cut his pay by 31% during the coronavirus pandemic times. His salary was $0.68 million in 2019-20, however, his compensation was $0.98 million in 2018-19.
The present 5-year term of Wipro Limited’s Executive Chairman Rishad Premji will end on 30 July 2024. Rishad joined the company in 2007 and has worked in different roles before taking the position of Executive Chairman in 2019.
He began his work journey at Wipro as a general manager in Wipro’s Banking and Financial Services business. Then he went on to lead Investor Relations and then head Wipro’s Strategy and M&A. Rishad took the role of Chief Strategy Officer at Wipro by conceptualizing Wipro Ventures, which is a $250 million fund to invest in startups.
He also took part in maintaining investor and government relations for the company. Presently working as the Executive Chairman, Rishad works with Wipro’s leadership team to give direction and strategic insights to the company.
Before joining his father’s business Wipro, Rishad worked with Bain & Company in London, which works on assignments across automobile, telecom, insurance, and consumer products. He has also served in the insurance and consumer lending segment by working with GE Capital in the US. He is a graduate of GE’s Financial Management Programme.
Rishad is the son of Wipro head Azim Premji. He was named as the successor of his father who is an Indian businessman and philanthropist. He served as the Chairman of NASSCOM for 2018-19. In 2014, Rishad was acknowledged as a Young Global Leader by the World Economic Forum for his extraordinary professional achievements, leadership, and dedication to society.
During and after the coronavirus pandemic times, many top leaders have decided to get paid less to cover up their business losses. This is because of the recession, poor economic structure, and recent advancements in technology that are being introduced rapidly. There are also layoffs and salary cuts among mid-management and junior roles for many years.