After Tata Consultancy Services (TCS) recorded a 4.2 percent increase in net profit for the March 2014 quarter to Rs 6,608 crore compared to Rs 6,340 crore in the same period last year, a few managers at TCS have reportedly received a pay hike of 31 percent. Meanwhile, the other employees of the IT giant are said to have received a hike of about 10 percent.
N Chandrasekaran, who was the CEO and MD of TCS until February this year, earned Rs 30 crore in 2016-17, around 83 percent (Rs 25 crore) of which was a commission, according to the 2017 annual report of the company. The rest came in the form of basic salary (Rs 2.4 crore) and perquisites (Rs 2.7 crore), the Economic Times reported.
Chandrasekaran was appointed as the chief of the Group's holding company in February this year after the unceremonious exit of Cyrus Mistry. He was replaced in TCS by Rajesh Gopinath for a five-year term with effect from February 21, 2017. Gopinath earned Rs. 6.2 crore last fiscal.
Apart from Chandrasekaran and Gopinath, other key managers who received a pay hike of over 30 percent include Suprakash Mukhopadhyay, global treasury head and company secretary, and executive director Aarti Subramanian, reported Business Standard. Mukhopadhyay is said to have earned Rs 2.32 crore, while Subramanian took home Rs.3.7 crore last fiscal.
TCS added 33,380 employees on a net basis during the year and the IT giant said that the managerial remuneration for the FY17 saw an increase of 31.38 percent and the employee remuneration went up by 4.91 percent.
"Despite headwinds from currencies, we have ended FY17 with an industry-leading financial performance while generating strong cash flows. We continue to invest to support organic growth of our digital business, build new market segments and drive profitability in our targeted range," V Ramakrishnan, chief financial officer, had earlier said in a statement.
While TCS reported a 4.2 percent increase in its net profit in Q4, it marked a drop of 2.5 percent from Rs 6,778 crore earned in the December 2016 quarter. In the year 2016-17, revenues increased 8.6 percent YoY to Rs 117,966 crore and net profit also rose by the same margin to Rs 26,289 crore.
The company said the growth came despite political headwinds during the year. "FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets. We added $1.4 billion dollars in constant currency revenues during the year and increased our digital revenues sharply as we helped our customers leverage the digital economy," Rajesh Gopinathan, CEO and MD, earlier said in a statement.
