Press Trust Of India / New Delhi Jun 08, 2009, 00:15 IST
The country’s top IT firm, Tata Consultancy Services: (TCS), has enhanced total pay packages of its top management personnel and board members by over Rs 1 crore and in the process, giving a better hike to its incoming chief executive officer (CEO) than his predecessor.
The Tata group entity paid a total remuneration of Rs 12.80 crore to its key management personnel and board members during 2008-09, up from Rs 11.08 crore in the previous fiscal.
In terms of total package, CEO S Ramadorai was the highest paid executive with a total remuneration of Rs 4.1 crore in the fiscal, according to TCS’ annual report.
Ramadorai’s pay package grew by about 22 per cent from Rs 3.37 crore in 2007-08 but it was lower than a hike of 36 per cent for Chief Operating Officer N Chandrasekaran.
Chandrasekaran, who would replace Ramadorai as TCS CEO later this year, saw his remuneration rise from Rs 1.41 crore to Rs 1.92 crore.
Executive Director Phiroz Vandrevala got the highest pay hike of 41 per cent among the company’s board members as his remuneration rose from Rs 1 crore to Rs 1.41 crore.
The hike in the remuneration for both Chandrasekaran and Vandrevala exceeded also the increase in the company’s total employee cost of about 25 per cent.
At the same time, Ratan Tata, TCS’s non-executive Chairman, saw his remuneration, comprising of a commission and sitting fees for board members, unchanged at Rs 55.60 lakh.
The company has identified cost reduction as one of its focus areas. Its ‘other operating expenses’ fell to 14.58 per cent of revenue in 2008-09, from 16.37 per cent in the previous fiscal, primarily owing to reduction in costs related to software and hardware, recruitment and training and travel and conveyance.
Interestingly, TCS’s Chief Financial Officer S Mahalingam got a lesser total remuneration of Rs 1.7 crore in 2008-09, against Rs 2.31 crore in the previous year.
TCS said it paid remuneration by way of salary, benefits, perquisites and allowances and commission to its MD and executive directors and the annual increments were effective form April 1, each year.
During 2008-09, TCS paid sitting fees of Rs 10,000 per meeting to its non-executive directors for attending meetings of the board as also that of the board committees.
Besides, the company also pays commission to non-executive directors within a ceiling of one per cent of net profit and also reimburses the out-of-pocket expenses incurred by the board members for attending meetings.
TCS CEO and MD Ramadorai was paid a salary of Rs 76.20 lakh, benefits, perquisites and allowances of Rs 83.35 lakh and commission of Rs 2.5 crore in 2008-09.
At the same time, the incoming CEO Chandrasekaran got Rs 27.43 lakh as salary, Rs 34.66 lakh as benefits, perquisites and allowances and Rs 1.3 crore as commission.
The seven non-executive directors, including Ratan Tata, together were paid total commission of Rs 3.6 crore, up from Rs 3 crore in the previous fiscal.
At the same time, the sitting fees of these seven directors rose to Rs 7 lakh from Rs 6 lakh. In total, the non-executive directors were paid a total remuneration of Rs 3.67 crore while key management personnel and whole-time directors were together paid Rs 9.13 crore.
they held promotions of eligible employees for more than one year and now promoted them without any hike ... and the higher management is being paid for this .... utter nonsense
shame on this stupids, they are eating hard earned money of employees by the name of cost cutting, why don't they compramise their profits why only employees??
This is atrocious..... They have reduced pay scale for the employees who really work whereas for those whose is already in peak, they have given hike.Doesnt make the pans balanced.It reveals the cunningness of TCS HR.
Under TCS logo, it says "Beyond the Obvious". And that's exactly what has happened. Lay-off, no yearly pay-hike, no promotion, no variable component. Operational cost reduction as one of the focus areas. Annual result declared as having revenues over $6bn. 1:1 share. Fat cats are getting fatter. Shameless people and hence, so many contradictional statements. Ture workforeces are being ignored. This holds the true picture of an Indian IT giant. Jay ho !!!
I still do not believe that our beloved CEO's salary has jumped to 4cr, and his beloved nephew-cum-designated CEO is touching 2Cr. He wrote 4-page email stating the pain company is going through and sacrifices all have to make - no increments, no variable allowance, stopping the company buses, limited night-drop-offs, no company contributtion to health insuracne, no travel by air abn no-a.c.-but-only-fans to work on weekends and late-nights.
What a sacrfice you have made sirs! Hats Off!
jk
Making money by sucking the blood of poor employees who slog day in and day out. Laying them off or reducing their pay in the pretext of recession and filling up their own pockets with money by showing cost reductions. And the biggest joke is removing ppl for "NONPERFORMANCE". Shame on Tata Group. What depths it has fallen too. JRD would be turning in his grave.
This is ridiculous. My work hours have been increased, promotion held for more than 2 yrs, colleagues laid off, benefits reduced to increase 'Operational Efficiencies' and not this. This is a very irresponsible and demoralizing move.
Though I'm not from TCS,this is funniest thing I ever heard.
They layoff people or no pay hike or promotion to "working" employee.
But mgmt guyz get everything at cost their employees.
I strongly believe Indian Govt. Should look into this issue."WE NEED IT UNION" to raise our voice against these acts.
Posted by: ITWorker
June 09 , 2009, 10:41 IST
Shame on TCS. IT companies are going the Baniya way. Cutting jobs and pays for employees while the Management retains or even increases their pay packets. Rightly said we need a Union . Only together we can make our point.
Hypocrisy - 'The company has identified cost reduction as one of its focus areas' and '...got the highest pay hike of 41 per cent among the company's board members'.
'The hike in the remuneration for both Chandrasekaran and Vandrevala exceeded also the increase in the company's total employee cost of about 25 per cent.
I wonder who deserves the hike more - the guy who is coding his life away? Or the fat-cats at the top?
This sounds ridiculous!! All TCS employees salary has been slashed or withheld as Variable component to an unbelievable extent and the top honchos are getting an increment.. with no promotions or any sought of motivation for high performing employees... this news is a total demotivator!!
Posted by: abc
June 13 , 2009, 20:04 IST
this is unbelievable...TCS top management doesn't show any values of TATAs...when poor employees work so hard with no benefit, these fat cats take in crores....Very poor, they should be shame about it!!!
Posted by: Employeeee
June 10 , 2009, 12:49 IST
TCS is nothing but TCR (C-Chandra, R-Ramadorai). Guys you can better switch off the AC's , Monitor and CPU's also to get more in your pay package? Isnt a good optimization technique?
Posted by: SG
June 08 , 2009, 21:21 IST
I was to get an early confirmation in March... But HR sent it back saying that policy had changed and there are 2 be no more early confirmations. There was no written policy on that. And my confirmation date has passed and I still havent got a salary increase.... I told myself that its recession and all. But now that u read all this and u feel really sad that after working so hard for an year, the company is deceiving you.
Content Guide
The country’s top IT firm, Tata Consultancy Services: (TCS), has enhanced total pay packages of its top management personnel and board members by over Rs 1 crore and in the process, giving a better hike to its incoming chief executive officer (CEO) than his predecessor.
