Srinivas Pallia, the newly appointed CEO and MD of Wipro is poised to receive a maximum compensation of $7 million per year for the initial two years of his tenure, as disclosed in a filing with the Bombay Stock Exchange (BSE).
This compensation encompasses a cash component ranging between $1.75 million to $3 million per annum. In contrast, the former CEO, Thierry Delaporte, is set to receive $4.33 million in cash compensation and applicable social security contributions, post necessary deductions.
Pallia's basic salary is outlined to be between $1,750,000 and $3,000,000 per annum, with eligibility for a target variable pay ranging from $1,750,000 to $3,000,000 per year. The actual payout of Pallia's compensation hinges on the accomplishment of organizational targets, including revenue, profit, and other criteria established by the Board of Directors.
Moreover, Pallia will receive long-term incentives in the form of stock compensation, specifically through the grant of American Depository Shares (ADS) Restricted Stock Units (RSUs) and ADS Performance Stock Units (PSUs) totaling $4,000,000, including $1,400,000 in ADS RSUs and $2,600,000 in ADS PSUs.
The vesting schedule for these RSUs and PSUs entails 25% vesting on May 2, 2025, another 25% on May 2, 2026, and the remaining 50% on May 2, 2027. Vesting of PSUs is subject to meeting revenue, margin, and free cash flow targets as per company policy and criteria set by the Board of Directors.
Pallia's contract spans five years, from April 7, 2024, to April 6, 2029, with outlined termination terms. Either party can terminate the agreement by providing notice or paying salary in place of the notice period. If Pallia initiates the termination, he must provide six months' written notice or pay an amount equivalent to six months' base pay. Conversely, if Wipro instigates the termination, it must provide Pallia with severance pay equivalent to 12 months' base salary.
