HCL Technologies (HCLTech), one of India’s leading IT firms, reported a modest 7% average salary hike for its employees, while its CEO, C Vijayakumar, received a staggering 190% increase in remuneration for the fiscal year 2023-24.
The company also posted robust Q3 FY25 financial results, including a 5.5 per cent rise in net profit to Rs 4,591 crore and a 5 per cent increase in revenue, reaching Rs 29,890 crore. It declared an interim dividend of Rs 18 per share, showcasing its financial strength.
HCLTech announced an average salary hike of 7% for its employees, positioning the increment as a recognition of their efforts amidst challenging global economic conditions
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In stark contrast, CEO C Vijayakumar’s total remuneration for FY24 skyrocketed by 190%, making him the highest-paid CEO in the Indian IT sector. His earnings for the year reached Rs 84.16 crore (approximately $10 million), up from Rs 28 crore in FY23.
Breakdown of CEO Compensation for FY24:
- Base Salary: Rs16.39 crore
- Performance-Linked Bonus: Rs 9.53 crore
- Long-Term Incentive (LTI) Cash Component: Rs 19.74 crore
- LTI – Perquisite Value of RSUs: Rs 38.15 crore
- Benefits, Perquisites, and Allowances: Rs 33 lakh
This sharp increase in pay has been attributed to the CEO’s role in driving HCLTech’s strategic growth initiatives, delivering shareholder value, and navigating global markets effectively.
The growing disparity is highlighted by the ratio of the CEO’s remuneration to the median employee salary, which stands at a staggering 707:1. This stark contrast underscores concerns about income inequality within corporate structures, with critics arguing that such disparities could dampen employee morale and impact organisational cohesion.
The contrasting hikes for employees and the CEO spotlight the broader debate over income inequality in corporate India, emphasizing the need for organizations to ensure that growth and rewards are equitably distributed.
Recently, L&T Chairman SN Subrahmanyan suggested employees work 90 hours a week, including Sundays. The company defended its chairman, emphasising that his remarks align with the broader vision of contributing to nation-building.
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