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TCS boss Chandrasekaran gets 50% pay hike

Tata Consultancy Services, India's biggest outsourcer, has raised the salary of its chief executive and managing director N Chandrasekaran by 50 per cent to Rs 15 lakh per month effective from April 2014. The hike is subject to approval by the shareholders.

Mr Chandrasekaran, who became chief executive in October 2009, had received a pay hike of about 40 per cent to Rs 10 lakh in July 2011 earlier.

"The Board has revised the maximum limit of salary of N Chandrasekaran from Rs 10 lakh per month to Rs 15 lakh per month, with effect from April 1, 2014, for the remainder of the tenure of his appointment i.e. up to October 5, 2014, with proportionate increase in the benefits related to his salary," TCS said in a recent filing to stock exchanges.

Taking into consideration increased business activities of TCS and the responsibilities cast on Chandrasekaran, the board has revised the maximum limit of salary, the company added.

The company's annual general meeting is scheduled for June 28.

TCS is growing much faster than its rival Infosys, which recalled its founder and former chairman Narayana Murthy from retirement last week to head the company.

Infosys' weak performance had forced chief executive S.D. Shibulal to take a salary cut last month. According to a filing with the U.S. Securities and Exchange Commission, Mr Shibulal's salary of $119,774 for 2012-13 was nearly 27 per cent lower compared to the previous fiscal. (Also read: Infosys chief executive Shibulal not among firm's top 10 paid executives)

Shares in Infosys have gained 8.4 per cent since S.D. Shibulal took over as chief executive in August, 2011, lagging the 28 per cent gain in the BSE IT benchmark. (Track stock)

In contrast, during Mr Chandrasekaran's tenure as the chief executive (since October 2009), TCS has grown at a compounded annual rate of 21 per cent. It posted a turnover of $11.6 billion last fiscal. TCS reported 22 per cent jump in net profit at Rs 3,596.9 crore for January-March quarter, meeting market expectations.

Infosys is expected to grow between 6-10 per cent in 2013-14, while TCS expects to beat Nasscom's industry estimate of 12-14 per cent growth.

(With inputs from Press Trust of India)