Tata Consultancy Services (TCS), India’s largest IT services provider, increased its chief executive officer’s salary by 26.52 per cent for the Financial Year 2021-22 (FY22). Rajesh Gopinathan received a total compensation Rs 25.75 crore, an increase of 26.6 per cent, according to the company’s annual report for FY22.
N Ganapathy Subramaniam, chief operating officer, received a compensation package of Rs 20.69 crore in FY22 up 29.3 per cent.
Average annual salary increase for TCS employees was in the range of 5-8 percent in India. However, during the course of the year, the total increase was approximately 10.5 percent after accounting for promotions and other event-based compensation revisions. Employees outside India received a salary increase ranging from 1.5 per cent to 6 percent.
The report said the increase in remuneration is in line with the market trends in respective countries. The performance pay is linked to the organisation’s performance and individual utilization in addition to individual performance. “Increase in the managerial remuneration for the year was 27.38 per cent,” said the company.
Gopinathan, in a letter to the shareholders, also said that at the current pace of growth, it is only a matter of time before TCS doubles its revenue and hit the $50 billion mark.
“We are focused on not only our velocity, but also on ensuring we get there fighting fit, so it does not become a finish line to stumble across, but a launchpad to achieve even greater heights,” he said the letter.
To achieve this milestone and also to keep focus on its customer, TCS rolled out a new organizational structure. The company has rearranged existing units into three business groups.
These three groups are; the Relationship Incubation Group that will provide the high-touch, high engagement, delivery-focused model that new clients require. Enterprise Growth Group which pulls together capabilities from across the different service lines to stitch together solutions that address clients’ business needs when the relationship is in its hyper growth phase; and finally the Business Transformation Group that will manage largest clients and help them accomplish their growth and transformation objectives.
“This new purpose-designed organization structure, along with continued investments in building newer capabilities, next generation delivery models and assets that help our clients innovate at scale, and in building our brand, will help us deepen our customer relationships, expand our addressable market, gain market share and power growth in the years ahead. We thank you for your continued support in this exciting journey ahead,” said Gopinathan.