Country's largest software Tata Consultancy Services (TCS) has hiked the pay package of its chief N Chandrasekaran, raising his monthly salary limit nearly 70% to Rs 10 lakh.
The steep pay hike comes against the backdrop of the company's good performance in recent quarters, even as many of its peers are grappling with tough business conditions.
In a filing to the Bombay Stock Exchange, TCS said, "Taking into consideration the increased business activities and the responsibilities cast on N Chandrasekaran, the board at its meeting held on May 20, 2011 has revised the maximum limit of salary of Chandrasekaran from Rs 6 lakh per month to Rs 10 lakh per month with effect from April 1, 2012, with proportionate increase in the benefits related to his salary."
All other terms and conditions relating to his appointment will remain unchanged, it added.
The revision in terms of remuneration of Chandrasekaran will come up for approval at TCS' 16th Annual General Meeting to be held on July 1, 2011.
Chandrasekaran was appointed CEO and Managing Director of TCS for five years from October 6, 2009, with an initial maximum monthly salary of Rs 6 lakh.
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In March this year, TCS rival and country's third largest software exporter Wipro had said its board had approved a pay package of up to Rs 10 crore annually for TK Kurien, the new CEO of its IT business.
During the fiscal ended March 31, 2011, Chandrasekaran had received Rs 60.96 lakh as salary, Rs 69.43 lakh as benefits, perquisites and allowances and Rs 4 crore as commission.
TCS reported 31.1% jump in consolidated net profit at Rs 2,623 crore for Q4 2010-11, while for the whole fiscal, net profit rose by 29.5% to Rs 9,068 crore.
Revenues increased 31.3% to Rs 10,157 crore for Q4 FY11, while for FY11 it stood at Rs 37,325 crore on a year-on-year basis.