TCS CEO Gopinathan’s salary up 26.6% in FY22 as company revamps business groups

Tata Consultancy Services (TCS), India’s largest IT services provider, has raised the salary of its chief executive by 26.52% for the financial year 2021-22 (FY22). Rajesh Gopinathan received a total compensation of Rs 25.75 crore, an increase of 26.6%, according to the company’s annual report for FY22.

N Ganapathy Subramaniam, Chief Operating Officer, received an aggregate compensation of Rs 20.69 crore in FY22, up 29.3%.

The average annual salary increase for TCS employees was around 5-8% in India. However, during the year, the total increase was approximately 10.5% after taking into account promotions and other event-based compensation reviews. Employees outside India received a salary increase ranging from 1.5% to 6%.

The report indicates that the increase in compensation is in line with market trends in the respective countries. Performance pay is tied to organizational performance and individual usage in addition to individual performance. “The increase in executive compensation for the year was 27.38%,” the company said.

Gopinathan, in a letter to shareholders, also said that at the current rate of growth, it is only a matter of time before TCS doubles its revenue and hits the $50 billion mark.

“We focus not only on our speed, but also on ensuring that we get there in good physical shape, so that it does not become a finish line to cross, but a launching pad to reach even greater heights. “, he said in the letter.

To take this step and stay focused on its customer, TCS deployed a new organizational structure. The company reorganized the existing units into three business groups.

These three groups are; the relationship incubation group that will provide the delivery-focused, high-engagement, high-contact model that new customers need. Enterprise Growth Group which brings together the capabilities of different service lines to assemble solutions that meet the business needs of customers when the relationship is in its hyper-growth phase; and finally the business transformation group which will manage the most important customers and help them achieve their growth and transformation objectives.

“This purpose-built new organizational structure, along with continued investments in building new capabilities, next-generation delivery models and assets that help our customers innovate at scale and build our brand, will help us deepen our relationships with our customers, expand our addressable market, gain market share and fuel growth in the years to come. We thank you for your continued support on this exciting journey ahead,” Gopinathan said.

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