TCS top management takes pay cut in financial year 2020 to conserve cash amid Covid-19
Tata Consultancy Services (TCS) has said in an annual report, Chief Executive Officer, Rajesh Gopinathan’s remuneration shrank 16.5% to INR 13.3 crore in 2019-20 compared to the previous fiscal.
Gopinathan’s pay package is 214.65 times the median salary of TCS. In 2018-19, Gopinathan had received a total remuneration of Rs. 16.02 crore which was 262 times the median salary of TCS employees.
TCS Chief Operating Officer N Ganapathy Subramaniam earned over Rs 10.11 crore in FY20 as compared to Rs 11.61 crore in FY19—a 12.9 percent decline. Chief Financial Officer Ramakrishnan V took home Rs 3.98 crore in FY20 compared to Rs 4.13 crore last year.
According to the annual report, the managerial remuneration for the year decreased by 15 percent. The executive remuneration for FY20 is lower than FY19 in view of the economic conditions. The directors decided to moderate the executive remuneration for this year to express solidarity and conserve resources.
Non-managerial staff, however, were given average pay hikes of 6% in India, the same as in the 2018-19 fiscal year. Employees outside India received a wage increase of 2- 6%.
TCS said while there were short term business challenges due to the pandemic, it expects to gain more business later, as companies invest more in technology to adapt to the new normal and differentiate themselves.
Chairman of TCS as well as Tata Sons, N Chandrasekaran, said in a letter to shareholders. “It is well-positioned to weather the storms ahead and take advantage of opportunities that come up during the downturn to acquire new capabilities and gain market share. The next few months will be difficult, but your company is strong with deep relationships with customers and partners, enviable scale, a diversified business mix, a robust and resilient business model, and strong financials.”
Gopinathan wrote to shareholders that whenever the externality is removed, an equally quick recovery should follow.
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