HCLTech pays ₹94.6 cr to CEO Vijayakumar in FY25, proposes to pay ₹162 cr in FY26
In a recent development, Indian IT services major HCLTech has revealed that it paid its CEO, C Vijayakumar, a whopping ₹94.6 crore (approximately $10.85 million) in FY25, as per its annual report. This substantial payout has raised eyebrows, especially when compared to the salaries of CEOs of other leading Indian IT companies, including TCS and Infosys.
According to the annual report, Vijayakumar’s remuneration in FY25 included a fixed component of ₹12.1 crore and a variable component of ₹82.5 crore, which was paid under the company’s performance-linked incentive (PLI) scheme. The PLI scheme is designed to reward executives for meeting specific performance targets, and in Vijayakumar’s case, the scheme appears to have paid off handsomely.
In comparison, TCS CEO K Krithivasan was paid a relatively modest ₹26.52 crore in FY25, while Infosys CEO Salil Parekh earned ₹80.62 crore, which is still significantly lower than Vijayakumar’s payout.
It’s worth noting that Vijayakumar’s salary is not the only one that has seen a significant hike in recent times. Several other top executives at HCLTech, including its CFO and other senior leadership team members, have also received substantial pay hikes in the past year.
But what’s even more striking is that HCLTech has proposed to hike Vijayakumar’s salary by over 71% YoY to $18.6 million (₹162 crore) in FY26. This proposed increase is significantly higher than the average salary hike for most employees at HCLTech, which is typically around 5-7% per annum.
So, what’s driving these massive pay hikes for HCLTech’s top executives? There are several factors at play here. Firstly, the company’s financial performance has been outstanding in recent times, with its revenue growing at a CAGR of over 15% in the past three years. This has led to a significant increase in the company’s profits, which has, in turn, resulted in a substantial increase in the remuneration for its top executives.
Secondly, the IT industry is going through a period of significant transformation, with the rise of new technologies such as cloud computing, artificial intelligence, and cybersecurity creating new opportunities for companies like HCLTech. As a result, top executives at HCLTech are being paid to lead the company’s efforts to capitalize on these opportunities and drive growth.
Finally, HCLTech’s pay structure is designed to attract and retain top talent in an increasingly competitive job market. With the company’s revenue and profits growing rapidly, it’s no surprise that top executives are being paid to lead the company’s efforts to continue this growth trajectory.
In conclusion, HCLTech’s decision to pay its CEO Vijayakumar ₹94.6 crore in FY25 and propose to pay him ₹162 crore in FY26 is a reflection of the company’s outstanding financial performance and its commitment to attracting and retaining top talent. While some may view these pay hikes as excessive, they are a necessary evil in an increasingly competitive job market where top executives are being paid to drive growth and lead their companies to new heights.
