Wipro May Compensate $11 Mn To Ex-CEO Thierry Delaporte
The payment will continue unless Delaporte secures new employment or becomes a consultant to any company within 12 months
Wipro has recently changed its top management to improve its business operations and increase profitability. As a result of this decision, the company will be providing a substantial compensation package of Rs 92.1 crore (approximately USD 11 million) to its former CEO Thierry Delaporte, who was removed from his position before the completion of his official tenure.
This compensation is based on the contract, which is commonly adopted by companies across the globe. Under this agreement, top executives receive significant payback from their organisation if terminated before the completion of their working period. Wipro had inked a similar accord with Delaporte, which includes a payment equivalent to 12 months of the employee's base salary at the time of termination, which will be disbursed over 12 months starting from the date of termination.
The payment will continue until Delaporte secures new employment or becomes a consultant to any company within 12 months.
In the fiscal year of 2023, Delaporte received a total compensation exceeding USD 10 million, as per reports.
Wipro has not officially disclosed its former CEO’s compensation amount.
It is not uncommon for a tech giant to remove its top employee, as terminations are frequent in the technology industry. Over the past few years, the compensations given to departing CEOs at companies like Tata Consultancy Services (TCS), Cognizant and Wipro have varied from Rs 48 crore to Rs 92 crore.
