Corona Impact? Indian IT Giant effects Pay Cut in Top Management

Tata Consultancy Services' Chief Executive Rajesh Gopinathan's annual income shrunk 16.5% to Rs 13.3 crore in the fiscal year ended March 31 from Rs 16.4 crore in the previous fiscal year.

Likewise, Chief Operating Officer N Ganapathy Subramaniam's income dropped 12.9% to Rs 10.1 crore from Rs 11.6 crore while Chief Financial Officer V Ramakrishnan's income dropped 3.63% to Rs 3.98 crore from Rs 4.13 crore.

TCS’ Directors, including HDFC CEO Keki Mistry, also took a pay cut.

The total compensation for independent and other executive directors fell to Rs 9.20 crore from Rs 12.43 crore.

In its latest annual report, the top IT company said it was on account of the COVID-19 impact.

"The managerial renumeration for the year decreased by 15%. The executive renumeration for FY 2020 is lower than FY 2019 in view of the economic conditions impacted by the Covid-19 pandemic. The directors have decided to moderate the executive renumeration for this year to express solidarity and conserve resources," TCS said in the report as per TOI.

Non-managerial staff in India, however, were given average pay hikes of 6%. Employees outside India received a wage increase varying from 2% to 6%.

In his letter to shareholders, Gopinathan said, "The economic downturn is not due to any structural problem in any industry, but duw to an externality that has hit the pause button on all economic activity. Whenever that externality is removed, an equally quick recovery should follow."

*Image for representational purpose only