Cognizant CEO tops Indian IT executives with ₹186 crore salary

Cognizant Technology’s CEO Ravi Kumar Singisetti secured a hefty $22.56 million, roughly ₹186 crore, in compensation last year, securing his position as the top-paid Indian executive in the tech services domain.

Taking the reins in January 2023 following his predecessor’s dismissal, Kumar’s compensation skyrocketed, largely due to a substantial one-time stock reward. His 2023 earnings dwarfed his forerunner’s, Brian Humphries, who garnered $17.9 million the prior year.

Cognizant’s filing with Nasdaq delineated the makeup of Kumar’s compensation, spotlighting performance stock units (PSUs) and restricted stock units (RSUs). The PSUs boasted a target value of $3,000,000, with potential payouts ranging from 0% to 250% based on the company’s stock performance over four years. Additionally, Kumar received RSUs valued at $5,000,000, a buyout to supplant forfeited equity from his previous employer.

In juxtaposition to revenue, Kumar’s compensation represented 0.11% of Cognizant’s $19.35 billion earnings, trumping his counterparts in the Indian IT sector. Wipro’s former CEO Thierry Delaporte, for instance, received $10.1 million, equating to 0.089% of the company’s revenue.

Accenture, a behemoth in comparison, disbursed $31.55 million to its chair and CEO Julie Sweet, comprising 0.049% of its $64.1 billion revenue.

However, Kumar’s windfall arrives amid Cognizant’s struggle to maintain stride with rivals. Despite a marginal revenue dip from $19.43 billion to $19.35 billion, the firm’s operating margin diminished from 15.3% to 13.9%. To buoy profitability, Cognizant shed 3,500 jobs, constituting 1% of its workforce. As a result, its global headcount dipped to 3,47,700, with declines notable in India, the US, and Europe.

The substantial compensation bestowed upon Kumar underscores prevalent trends in CEO remuneration across the IT spectrum, wherein stock awards significantly elevate total earnings vis-à-vis employee medians. While such payouts are commonplace, they occur amidst a backdrop of operational challenges and organizational restructuring.