HCL Technologies’ CEO, C Vijayakumar, experienced a significant decrease in his salary, now earning Rs 28.4 crore ($3.46 million) in the fiscal year 2023. This represents an 80% fall compared to the Rs 130 crore he earned in the previous year. The company’s annual report clarified that the sharp dip was a result of the absence of the long-term incentive component, which is scheduled to be paid in the next fiscal year.
The long-term incentive (LTI) is paid based on the achievement of predetermined milestones set by the board, and the LTI related to performance for FY 2021-22 and FY 2022-23 will be paid during FY 2023-24. It’s important to note that Vijayakumar’s entire remuneration was received from HCL America Inc, a wholly-owned subsidiary of the company in the US. In the fiscal year 2022, he earned around $12.5 million under LTI.
On the other hand, there was no change in the salary of HCLTech’s chairperson, Roshni Nadar Malhotra, whose remuneration remained at Rs 1.03 crore, the same as in the previous fiscal year.
In a note to shareholders, Vijayakumar addressed the company’s operations amid a challenging environment of high volatility. Factors such as geopolitical uncertainties, rising inflation, and softening consumer spending in some sectors are causing turbulence in the market. Vijayakumar took over as HCL Tech’s CEO in July 2021.
HCL Tech reported subdued first-quarter earnings due to a slowdown in technology spending and weak profitability. The company’s consolidated net profit for the first quarter (Q1FY24) ended on 30th June 2023 stood at Rs 3,534 crore, representing a 7.6% increase year-on-year. This was lower than the net profit of Rs 3,983 crore posted in the previous quarter.
The decrease in the CEO’s salary comes as a welcome development for the company’s employees, particularly those with lower salaries, as it signals the company’s commitment to addressing their concerns and acknowledging their importance. While HCL Tech faces challenges in the market, the reduction in the CEO’s remuneration is seen as a positive step towards supporting the welfare of its workforce.
