WIPRO'S OUTGOING CEO THIERRY DELAPORTE TO RECEIVE WHOPPING RS 92.1 CRORE SEVERANCE PACKAGE - DETAILS

Thierry Delaporte, the outgoing CEO of Wipro, is set to receive a massive separation payment of Rs 92.1 crore (approximately USD 11 million) following his premature departure from the helm of India's fourth-largest outsourcing giant.

Delaporte's swift exit adds his name to the growing roster of top executives within India's highly globalized IT industry, who have secured robust severance agreements, cementing their financial safety nets in the event of unexpected terminations.

Related News |

According to The Economic Times report, Delaporte's lucrative severance package stems from the intricacies of his employment agreement, which mandates a severance payout equivalent to 12 months' base salary in the event of termination without cause by the company. This sum, payable over a year following termination, serves as a testament to the generous compensation structures prevalent among top-tier IT leaders.

An analysis of employment contracts among leading IT figures reveals a consistent pattern of substantial exit payments. The executives at firms like Tata Consultancy Services (TCS) and Cognizant have received severance packages ranging from Rs 48 crore to Rs 92 crore, underscoring the industry's commitment to compensating departing leaders commensurately.

The report added that industry experts emphasise that when the tenures of IT services company CEOs are abruptly curtailed, exit compensation aligns with contractual obligations or prevailing industry norms. Such practices aim to provide equitable financial support to departing executives, particularly in instances where future employment prospects within the sector may be limited.

Former TCS CEO Rajesh Gopinathan's resignation in 2023 saw the approval of expenses totaling Rs 48 crore, reflective of the company's commitment to honoring contractual obligations.

Related News |

Similarly, Brian Humphries, erstwhile CEO of Cognizant, exited with a severance package amounting to USD 6.6 million, comprising various components such as base salary, annual incentives, and accelerated stock vesting.

2024-04-25T07:59:55Z dg43tfdfdgfd