Bengaluru-based technology major Wipro has offered up to €4.45 million (nearly Rs 38 crore at current exchange rates) in annual remuneration to its incoming CEO Thierry Delaporte, who is set to join the Rishad Premji-led information technology (IT) services firm on July 6. At the lower end of the salary band, he could receive €3.2 million (Rs 27.2 crore).
Delaporte’s salary at gross level is nearly 17% higher than the company’s former CEO Abidali Neemuchwala, who received €3.79 million (Rs 32.3 crore) during the last financial year, a statement said.
Neemuchwala stepped down from the position on June 1, citing family commitments. Wipro chairman Rishad Premji is overseeing the $8 billion corporation’s operations till Delaporte takes over.
“I look forward to working closely with Rishad, the board, senior leadership and the hugely talented employees of Wipro to turn a new chapter of growth and build a better tomorrow for all our stakeholders,” Delaporte said in the company’s annual report for the financial year 2019-20.
In a board meeting on May 29, Wipro appointed Delaporte, who was Capgemini COO until this assignment, as its managing director and CEO for five years. Delaporte will continue to be based in Paris and is the first foreign-origin CEO at a top tier Indian IT services firm.
While Delaporte’s appointment is approved by Wipro’s board, the company has placed the resolution for shareholders’ approval, which will take place at its annual general meeting on July 13.
As per the salary breakup, Delaporte will get a basic salary in the range of €1.1 million to €1.4 million, expatriate allowance between €428,000 and €550,000, and variable pay of €1.7 million-2.5 million, the statement said.
Other than that, he will also receive a one-time cash award of $3 million, which will be paid in two equal installments -- one on July 31, 2020 and the other on July 31, 2021, it said. Delaporte will also receive 12,00,000 American depositary shares (ADS), which comprise 3,00,000 restricted stock units and 9,00,000 performance stock units. He will get other benefits such as health, life and motor insurance and retirement benefits as well.
Separately, the board in May approved the reappointment of Wipro founder Azim Premji as non-executive director on its board. Rishad Premji took charge as chairman in July last year after his father Azim Premji announced his retirement.
Other than Rishad Premji and Delaporte, Wipro’s executive top brass includes COO Bhanumurthy BM, CFO Jatin Dalal and chief human resources officer Saurabh Govil.
Additionally, Wipro in May also appointed former HDFC managing director Deepak M Satwalekar as an independent director, replacing former State Bank of India chairperson Arundhati Bhattacharya, who recently took charge as software firm Salesforce’s India CEO. Satwalekar is also an independent director on the board of Asian Paints and Piramal Enterprises.