Wipro public shareholders object to outgoing CEO Delaporte’s severance pay
Thierry Delaporte had joined Wipro as CEO from Capgemini in 2020 | File photo: REUTERS
A majority of public shareholders in Wipro, India’s fourth largest information technology (IT) services company, objected to chief executive Thierry Delaporte’s cash compensation, according to regulatory filings.
Almost 80 per cent of them cast ‘against’ votes on a resolution to pay $4.33 million (Rs 36 crore) cash compensation to Delaporte, marking a rare instance of minority shareholders expressing displeasure over CEO pay at an IT company. Top public shareholders in Wipro include LICI Gratuity Plus Income Fund, JP Morgan Chase Bank, SBI Arbitrage Opportunities Fund.
High promoter shareholding (almost 73 per cent) in Wipro helped the resolution to be passed with nearly 90 per cent votes in favour. Institutional Investor Advisory Services (IiAS), a proxy advisory firm, in a May 16 note recommended shareholders to reject the resolution.
IiAS said the compensation is high for a two-month period. “It is unclear if this compensation was part of the terms negotiated on his employment contract. The company appears to be paying compensation to execute obligations that appear to be born out of basic professionalism,” it said.
After Delaporte resigned as managing director and chief executive officer on April 6, 2024, Wipro disclosed that it has agreed to him pay cash compensation of $4.33 million (around Rs 36.15 crore).
Wipro said the compensation was for Delaporte’s efforts in driving “significant transformation” at the company and for smooth transition, business continuity, and ensuring adherence to post-engagement obligations (including, but not limited to, confidentiality, non-solicitation, non-disparagement, and other obligations).
Delaporte’s total compensation for financial year 2023-24 was at $20 million (around Rs 166 crore), making him the highest-paid CEO in the Indian IT services sector.
First Published: May 31 2024 | 10:47 AM IST