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Mr Azim H. Premji

Our Bureau

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Bangalore, June 23 Wipro’s Chairman, Mr Azim Premji, settled for a lower pay packet for the year ended March 2008. Details published in Wipro’s annual report 2007-08 show that his remuneration for the fiscal dipped 63 per cent to Rs 1.31 crore compared with Rs 3.58 crore he received the previous year.

A significant portion of the chop came on the commission component of the salary, which dipped nearly Rs 1.9 crore for the year endd March 2008 to Rs 51.07 lakh.

In the previous year, Mr Premji received a whopping Rs 2.4 crore under the same head.

The report says the Board Governance and Compensation Committee recommends the remuneration, including the commission for the Chairman and Managing Director, based on the net profit of the company.

The company’s net profit rose about 12 per cent to Rs 3,283 crore for the year ended March 2008 compared with Rs 2,942 crore for the previous year. For Mr Premji, deferred benefits, too, have seen a slump from Rs 47 lakh in fiscal year 2006-07 to Rs 16.76 lakh in 2007-08.

Other annual compensation for 2007-08 was Rs 20.54 lakh compared with Rs 27.87 lakh in the previous period. The basic salary, however, remained at Rs 30 lakh as did allowances at Rs 13.1 lakh.

It is not yet clear if this fall in pay packages is an indication of the toughening environment for IT services.

The US, from which India gets a good chunk of its IT services revenues, is undergoing a slowdown that most IT honchos hope would end by September this year.

Interestingly, recent media reports have quoted the two new joint-CEOs of Wipro Technologies, Mr Girish S. Paranjpe and Mr Suresh Vaswani, as saying that the slowdown in the US is coming to an end and that clients are beginning to decide on new projects.

Earlier this month, India’s largest IT services company, Tata Consultancy Services, revealed that it had rejigged its chief’s pay package. Mr S. Ramadorai, CEO, TCS, saw the fixed component of his pay come down by Rs 4.1 crore to Rs 1.29 crore.

Meanwhile, the variable component shot up 30 per cent to Rs 2.08 crore from Rs 1.6 crore.

More Stories on : Software | Human Resources | People | Wipro Ltd

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