Tech Mahindra's CEO CP Gurnani takes 50% pay cut in Fiscal Year 2023.

CP Gurnani, the chief executive of the prominent technology conglomerate Tech Mahindra, has recently experienced a decrease in his annual compensation, according to a recent report.

Based on Tech Mahindra's annual report, CP Gurnani, the CEO of the company, saw a significant decline in his earnings for the fiscal year 2023 compared to the previous year.

The report indicates that Gurnani received approximately 50% less in salary and other compensation, earning Rs32 crore in fiscal 2023 compared to the Rs. 63.4 crore he earned in 2022.

This reduction in annual income was reportedly a result of Gurnani's choice to exercise a reduced number of stock options.

As per the report mentioned in TOI, CP Gurnani's earnings from employee stock option plans (ESOP) amounted to Rs.25.6 crore in the previous fiscal year, a decrease from Rs. 58.8 crore in FY22.

In his message to shareholders within the annual report, Gurnani recognized the impact of geopolitical tensions, inflation, and recession, which have resulted in a slowdown in enterprise tech spending. He emphasized the growing necessity for businesses to conserve resources and optimize costs amid these challenges.

Gurnani also acknowledged the ongoing and significant instability and transformation in the broader macroeconomic landscape.

It is important to highlight that CEO Gurnani was not the sole recipient of reduced compensation this year.

The managerial personnel of the company also saw a significant decrease of 41% in their total remuneration during the previous fiscal year.

This decline in pay was attributed to a lower utilization of stocks under the ESOP program.

Additionally, the report reveals that over 60% of the company's vacant positions were filled by promoting internal candidates throughout the year. This strategic choice not only resulted in cost savings related to external recruitment but also optimized the utilization of existing resources.