TechM’s next CEO to get ₹46.8 cr package

livemint.com:

BENGALURU : Tech Mahindra Ltd’s managing director and chief executive officer (CEO) designate Mohit Joshi has been offered a ₹7 crore joining bonus and stands to earn as much as ₹46.8 crore in his first year, making him one of the highest-paid professional CEOs in the country. The current CEO, C.P. Gurnani, earned ₹674.5 crore in remuneration between 1 April 2013 and 30 March 2023, largely on account of stock options exercised over the past decade, according to Mint’s analysis of company filings.

Gurnani still owns 7.6 million shares or 0.78% of Tech Mahindra, as of 31 March 2023, which are worth ₹836.7 crore at Thursday’s closing share prices. Joshi, who will take over from Gurnani as Tech Mahindra’s managing director and CEO on 19 December, has a fixed annual salary of £622,600 and a variable pay of £622,600. With the first-year variable pay guaranteed, he is assured of receiving ₹13.14 crore.

Joshi stands to make an additional ₹4.6 crore in annual performance bonus, which is about 70% of yearly variable pay, if the company meets growth targets set by the board. Joshi joins Tech Mahindra from Infosys Ltd, where he was president of the company and head of banking, financial services, and insurance ( BFSI), healthcare, and life sciences. In addition to the ₹7 crore as a joining bonus, Joshi also gets a one-time $3.5 million in stocks, 60% of which will be vested in his first year.

This implies he will get ₹12.41 crore in stocks in his first year. Finally, Joshi will get up to $3.5 million in stock option grants every year, vesting in equal instalments over three years. This translates to ₹9.6 crore in the first year, bringing his total compensation to ₹46.82 crore in the first year.