According to the annual report of Tech Mahindra, CEO CP Gurnani’s earnings for the fiscal year 2023 were approximately 50% lower compared to the previous year. In FY23, Gurnani earned a salary and other compensation of Rs 32 crore, a significant decrease from Rs 63.4 crore in the previous year. The reduction in remuneration can be attributed to Gurnani exercising a lower number of stock options.
The report states that Gurnani received Rs 25.6 crore from employee stock option plans (ESOP) in the last fiscal year, down from Rs 58.8 crore in FY22. In the annual report, Gurnani acknowledged that geopolitical tensions, inflation, and recession had impacted enterprise tech spending, leading businesses to focus on resource conservation and cost optimization. He also highlighted the significant instability and evolution in the broader macroeconomy, which is expected to continue.
Gurnani, who will retire in December 2023, expressed his gratitude to shareholders in his message, stating that change is inevitable and that it is time for him to step back after serving as the MD and CEO of Tech Mahindra for 14 years. Mohit Joshi, former president at Infosys, is set to succeed Gurnani as the CEO of Tech Mahindra on December 20.
The decline in compensation is not limited to Gurnani alone. The annual report reveals that the total remuneration of the company’s managerial personnel also fell by 41% in the last fiscal year due to a lower number of exercised stocks under ESOP. The report further discloses that over 60% of open positions were filled with internal candidates during the year.
Several other major IT companies have also witnessed a decline in CEO and CXO salaries in FY23 due to uncertain business conditions. Infosys CEO Salil Parekh’s compensation dropped by 29.3% to Rs 56.4 crore, and Wipro CEO Theirry Delaporte took home a 5% lower salary. Chairman Rishad Premji of Wipro experienced a nearly 50% reduction in compensation.
