Wipro chairman, CEO see pay fall as variable payouts decline

MUMBAI: When performance metrics tighten the purse strings, even the corner office feels the squeeze. Wipro Chairman Rishad Premji and Chief Executive Officer and Managing Director Srinivas Pallia took home smaller pay cheques in FY26 as lower variable payouts weighed on executive compensation, according to the IT services company’s latest annual report.

Premji’s total remuneration fell 47 per cent year-on-year to Rs 7.2 crore from Rs 13.7 crore in FY25, while Pallia’s compensation declined 7 per cent to Rs 49.6 crore, reflecting a tougher operating environment for India’s IT sector.

The reduction was largely driven by performance-linked components tied to the company’s financial outcomes during the year.

Under Wipro’s approved compensation framework, Premji is entitled to a commission equivalent to 0.35 per cent of the incremental consolidated net profit over the previous financial year. However, with profit growth remaining relatively modest in FY26, the commission payout shrank significantly despite being calculated as per the prescribed formula.

Premji’s remuneration included a fixed pay package of nearly Rs 7 crore, comprising a salary of Rs 2.5 crore and allowances of Rs 3.7 crore, while his commission stood at approximately Rs 20 lakh.

For Pallia, who took over as CEO and Managing Director on 7 April 2024, the decline stemmed from lower performance-linked incentives and stock-based rewards.

His compensation structure includes Performance Stock Units (PSUs) and variable incentives linked to revenue and profitability targets. According to the annual report, FY26 performance outcomes resulted in a lower payout compared to the previous year.

Pallia received Rs 29 crore in fixed pay during FY26, while variable compensation, including PSU vesting and incentive payments, amounted to Rs 20.6 crore, taking his total remuneration to Rs 49.6 crore.

The package comprised a salary of Rs 15.4 crore, variable pay of Rs 9.8 crore, and other annual compensation components worth Rs 23.2 crore.

The pay revisions come as India’s IT services industry continues to navigate a cautious demand environment marked by delayed technology spending, macroeconomic uncertainty and tighter client budgets. Across the sector, companies are increasingly linking executive rewards more closely to financial and operational performance, reinforcing a growing emphasis on accountability at the top.

For Wipro, FY26 served as a reminder that in a performance-driven era, compensation moves in lockstep with business momentum and even the boardroom is not immune when growth slows.