According to HCL Technologies’ annual report, the CEO, C Vijayakumar, earned Rs 28.4 crore ($3.46 million) in the fiscal year 2023, which marks a significant drop of nearly 80% compared to the Rs 130 crore he earned in the previous fiscal year. This decline in his remuneration is attributed to the absence of the long-term incentive component, which will be paid in the next fiscal year.
The long-term incentive (LTI) is paid at fixed intervals based on the achievement of predetermined milestones or parameters set by the board. The LTI related to performance for FY 2021-22 and FY 2022-23 will be paid during FY 2023-24, as mentioned in the annual report. It’s important to note that Vijayakumar received his entire remuneration from HCL America Inc, a step-down wholly owned subsidiary of HCL Technologies in the US. In the fiscal year 2022, he earned around $12.5 million under LTI.
In contrast, the salary of HCLTech’s chairperson, Roshni Nadar Malhotra, remained unchanged at Rs 1.03 crore, the same as the previous fiscal year.
In his note to shareholders, Vijayakumar mentioned that they continue to operate in an environment of high volatility in FY24. Various factors, including geopolitical uncertainties, rising inflation, and softening consumer spending in some sectors, are creating turbulence in the market. Vijayakumar assumed the role of HCL Tech CEO in July 2021.
HCL Tech reported subdued first-quarter earnings due to a slowdown in technology spending and weak profitability. The company’s consolidated net profit for Q1FY24 ended 30 June 2023, stood at Rs 3,534 crore, which was a 7.6 percent increase year-on-year. However, on a sequential basis, the net profit saw an 11 percent decline from the March quarter.
For FY24, the company projected revenue growth of 6-8 percent year-on-year in constant currency, according to their guidance.
