 "Wipro has announced the appointment of Srini Pallia as CEO and MD")
On April 6, Wipro's then chief executive officer (CEO) and managing director (MD) Thierry Delaporte resigned, and Srinivas Pallia succeeded him as the company's new MD and CEO, the tech major said in a regulatory filing.
Delaporte's tenure as CEO was to end in July 2025, but his resignation in April this year cut it short by a year.
Pallia to get $6 mn in annual remuneration
Wipro's new CEO, Srinivas Pallia, will receive up to $6 million in annual compensation during his initial year. Additionally, the IT major's board has approved a $4.33 million payment as compensation for former CEO and MD Thierry Delaporte.
Pallia's compensation package consists of various components, encompassing both fixed and variable elements, the specifics of which the company has disclosed in an exchange filing.
Base salary in the $1.75-$3 mn range
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Pallia's annual base salary is expected to fall within the range of $1.75 million to $3 million. Beyond his core compensation, he is entitled to variable pay, potentially ranging from $1.75 million to $3 million annually. However, the company said the actual disbursement of this portion depends on Wipro's achievement against predetermined metrics such as revenue and profit targets.
Long-term incentives for the CEO
Additionally, the Bengaluru-headquartered company has awarded Pallia long-term incentives in the form of stock compensation. These incentives, amounting to $4 million, comprise restricted stock units (RSUs) valued at $1.4 million and performance stock units (PSUs) valued at $2.6 million.
These stock units will gradually vest, with 25 per cent becoming available on May 2, 2025, another 25 per cent on May 2, 2026, and the remaining 50 per cent on May 2, 2027.
Pallia has been associated with Wipro for more than 30 years, and his most recent role was as CEO for Americas 1, which is Wipro's largest and fastest-expanding strategic market. In this capacity, he supervised various industry sectors, formulated their direction, and executed growth strategies, leading to enhanced market positions within those sectors.
Last year, former Wipro CEO Delaporte ranked as one of the highest-paid CEOs in India, earning an annual package exceeding Rs 82 crore, roughly equivalent to $10 million.
"The payment is proposed to be made in recognition of Delaporte's contributions in driving significant transformation at Wipro during his tenure as CEO and MD, and with a view to enable a smooth transition, ensure business continuity, and to ensure adherence to post engagement obligations," the company said in the release.
