Azim Premji, Founder Chairman and Rishad Premji, Chairman of Wipro, have both taken a voluntary cut in their compensation for the fiscal year 2020, according to the recent filing made to the Securities Exchange Commission in the US. While Azim Premji has foregone the profit linked commission payable, Rishad Premji has foregone both the variable pay and the profit-linked commission payable to him.
While the board did not determine the profit linked commission payable to Azim Premji and the variable pay and profit linked commission due to Rishad for FY20, just to give a sense, in the previous fiscal the company paid $131,231 and $697,531, respectively, under the commission and variable component of their salaries. Azim Premji as a part of his compensation is entitled to a commission at the rate of 0.5 per cent on incremental net profits of Wipro Limited for a fiscal year over the previous.
Chairman Rishad Premji's total compensation for the year stood at $683,496 as opposed to $987,652 in the previous year, while Azim Premji took home nearly half of what he earned last year at $135,772 as compared to 262,054 in FY19. Supporting the company in its humanitarian efforts, Patrick Dupuis, Independent Director also forwent his fourth-quarter commission, which the company will contribute to 'Wipro Cares' for its various COVID-19 related activities as part of its Corporate Social Responsibility Programme.
Wipro in the filing also cautioned about the uncertainty around the course of COVID-19 pandemic. "There is the uncertainty caused by COVID-19 across sectors and in all geographies that we operate in. Economic activity has slowed and nearly all of our industry verticals are likely to be impacted in the short term, and recovery may be staggered across sectors depending on the course of the pandemic. This is likely to have a significant impact on our customers' earnings and their IT spending with us," it stated. The company estimated a negative revenue impact of Rs 105 crore to Rs 120 crore ($14 million to $16 million) due to COVID-19 for the year ending March 31, 2020.