 "Tech Mahindra CEO CP Gurnani's salary halves in FY23 to Rs 32 crore")
Tech Mahindra CEO CP Gurnani's remuneration decreased by 51 per cent in the financial year 2022-23 (FY23), from Rs 63.4 crore to Rs 32 crore, according to the company’s annual report. This was due to a lower number of stock options exercised by Gurnani.
Despite the decrease in his remuneration, Gurnani's pay was still 467 times the median salary of a Tech Mahindra employee. According to the annual report, the pay package of employees rose by six per cent overall. Because of lower stock options exercised, employees in managerial positions also earned 41 per cent lesser remuneration during the year, the company said.
Gurnani earned Rs 25.6 crore in employee stock options (Esops) during FY23, a decrease of 56.46 per cent from the previous year's earnings of Rs 58.8 crore. Gurnani earned Rs 1.8 crore in commissions and made Rs 2.7 crore as part of this salary.
According to the annual report, the net profit of the IT company was down by 13.2 per cent year-on-year to Rs 4,832 crore while revenue rose by 19.4 per cent to Rs 53,390 crore. Earnings before interest and tax increased by 0.1 per cent over the year-ago period to Rs 8,029 crore.
Gurnani took over as the CEO in 2012 and is set to retire on December 19. Mohit Joshi will succeed him as CEO and managing director on December 20. Joshi was previously president at Infosys and joined Tech Mahindra as an additional director on June 20.
The development comes as other IT majors also reported a decrease in CEO salaries in FY23 due to headwinds in the economy.