Former Wipro Chief Executive Officer (CEO) and Managing Director (MD) Thierry Delaporte has set a remarkable benchmark in the Indian IT sector by becoming the highest-paid CEO for the financial year 2024. Earning an impressive sum exceeding $20 million (equivalent to over Rs 165 crore), Delaporte has managed to retain this top position for the second consecutive year, making headlines across the industry.
Delaporte, who resigned from the IT giant in April, paved the way for his successor, Srinivas Pallia. According to Wipro’s 20-F filings with the US Securities and Exchange Commission (SEC), Delaporte’s earnings comprised various components. His salary and allowances alone exceeded $3.9 million, while his commission and variable income surged past $5 million. Additional payments amounted to $7 million, and long-term compensation contributed more than $4 million to his total earnings.
In stark contrast, Srinivas Pallia, who assumed Delaporte’s former roles, receives an annual salary package around Rs 50 crore. This situates him as the second-highest earner among CEOs in the Indian IT industry for the financial year 2025, reflecting a significant albeit smaller compensation compared to his predecessor.
This financial disclosure emerges amidst Wipro’s reported decline in revenue for FY24. The company’s annual revenue fell year-on-year to Rs 89,760 crore from Rs 90,486 crore, marking a period of fiscal contraction. Specifically, for the quarter ending March 31, 2024, Wipro’s revenue dropped 4.2 percent to Rs 22,208.3 crore, a decrease from Rs 23,190.3 crore in the corresponding quarter the previous year. Despite the dip in revenue, Wipro managed to report an 8 percent net profit of Rs 2,835 crore for the January-March quarter of 2023-24.
. This is a slight reduction from the Rs 3,074.5 crore net profit reported in the same period last year.
The Bengaluru-based company, a stalwart in the Indian IT landscape, continues to navigate through economic ebbs and flows. While the slight contraction in revenue and profit might be a cause for concern for some stakeholders, the company’s ability to sustain substantial executive remuneration packages highlights its ongoing competitive positioning and strategic focus.
Delaporte’s tenure at Wipro has indeed been noteworthy, marked by significant financial rewards reflective of his leadership and the company’s growth trajectory during his tenure. His departure has undoubtedly prompted discussions on leadership transitions in major corporations and the financial packages tied to these roles.
Furthermore, the reported figures also cast a spotlight on the vast earnings disparity between top-tier executives and regular employees within the sector. The strategic decision by Wipro to offer such substantial remuneration packages underscores a broader trend within the global corporate landscape, where attracting and retaining top talent often necessitates lucrative compensation frameworks.
The broader implications of Delaporte’s earnings and the subsequent handover to Pallia will be a topic of keen interest among shareholders, analysts, and industry watchers. How Wipro navigates this transition period, addresses its revenue contractions, and continues to protect its market share will be closely scrutinized.
The significant differences in compensation packages, while reflective of individual past experiences and anticipated future contributions, also raise questions about corporate governance, fairness, and the strategic allocation of financial resources within large organizations. Delaporte’s financial windfall will certainly embolden discussions around these themes in boardrooms and among policymakers.
As Pallia steps into his new role, the industry will be watching closely to see how he capitalizes on his predecessor’s legacy while steering the company towards reversing the recent downturn in financial metrics. Balancing operational efficiencies with new growth initiatives will undoubtedly be key priorities for Wipro’s new leadership.
In summary, Thierry Delaporte’s landmark earnings underscore the transformative potential of effective leadership while simultaneously igniting a broader conversation on compensation and corporate strategy in times of economic fluctuation.
