Business

IIE DIGITAL DESK : Tata Consultancy Services (TCS) CEO K Krithivasan saw his annual remuneration increase by 4.6% in the financial year 2024–25, reaching a total of ₹26.5 crore, as per the company’s latest regulatory filings. This bump in compensation comes as the IT services giant navigates a challenging yet evolving global technology landscape under Krithivasan’s leadership.

Krithivasan, who took over the top role in March 2023 following the exit of former CEO Rajesh Gopinathan, has been at the helm during a crucial transition phase for the company. His leadership tenure began at a time when global macroeconomic headwinds were impacting the IT industry, with clients becoming cautious about spending. However, TCS has focused on long-term growth and expanding its capabilities in key verticals such as artificial intelligence, cloud computing, and digital transformation.

According to the company’s annual report, Krithivasan’s ₹26.5 crore package includes a ₹1.71 crore salary, ₹2.43 crore in benefits and allowances, ₹25 lakh in retiral benefits, and a substantial ₹21.95 crore in performance-linked incentives. The incentive payout reflects the company’s confidence in his ability to lead TCS through market uncertainties while maintaining profitability and client trust.

The hike in his pay — modest by industry standards — reflects a broader trend of balanced executive compensation amid tight margins and rising investor scrutiny. Notably, Krithivasan’s package still trails that of other Indian tech CEOs such as Wipro’s Thierry Delaporte and Infosys’ Salil Parekh, whose pay often includes larger stock incentives and international components.

Krithivasan, a TCS veteran of over three decades, previously headed the company’s BFSI (Banking, Financial Services and Insurance) vertical, which is one of TCS's most critical and revenue-generating segments. Since stepping into the CEO role, he has emphasized operational resilience, employee engagement, client satisfaction, and investments in emerging tech, particularly generative AI.

TCS has expanded its AI strategy with the launch of its proprietary platforms and partnerships with global hyperscalers. The company also continues to diversify its revenue base beyond the North American market, exploring opportunities in Europe, Asia-Pacific, and Latin America.

The annual report also outlines Krithivasan’s role in overseeing the transformation of TCS’s delivery model to one more suited for hybrid and remote work, reflecting changing client needs and employee expectations post-COVID. This includes a more agile operational approach and skilling initiatives to ensure the workforce remains future-ready.

Interestingly, Krithivasan’s compensation is also performance-linked in nature, with variable pay components tied to TCS's financial targets and strategic goals. TCS reported a consolidated net profit of ₹44,027 crore in FY24, up marginally year-on-year, on revenues of ₹2.40 lakh crore, which positions the company as one of the most profitable IT services providers globally.

Krithivasan emphasized the company’s strategic roadmap, including increased investments in innovation, employee skilling, and customer-centric platforms. He highlighted the need to “stay ahead of the curve in technological advancements and maintain delivery excellence, especially in a rapidly shifting global economy.”

As TCS gears up for the future, Krithivasan’s leadership and compensation reflect a balance between reward for performance and long-term sustainability. With digital transformation accelerating across sectors, the focus will remain on delivering consistent value to clients while upholding the Tata Group’s legacy of ethical governance and responsible leadership.