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India.com
13-06-2025
- Business
- India.com
Cognizant CEO Ravi Kumar's annual salary rises to Rs 70 crore for fiscal year 2024 whereas target compensation is much higher, it is…
(Image: cognizant) New Delhi: The annual salary of Cognizant CEO Ravi Kumar jumped to Rs 70 crore ($8.2 million) for the fiscal year 2024. This information was mentioned in the company's recent filing with the US Securities and Exchange Commission (SEC). However, according to Cognizant's proxy statement, despite the raise, Kumar's realised compensation was lower than the target compensation of Rs 137 crore ($16.1 million) for 2024. The shortfall was due to Kumar's Performance Share Unit (PSU) grants, which are yet to be vested. Consequently, Kumar's earnings in 2024 primarily comprised of base salary, Annual Cash Incentive (ACI) and quarterly vestings of Restricted Stock Units (RSUs), said Cognizant as reported by NDTV. 'The Compensation Committee determined that Kumar's target direct compensation for 2024 should be increased to $16,100,000 (11% increase vs. 2023) to reflect his performance in his first year as CEO and to better align his target compensation with CEOs in the 2024 peer group, taking into account compensation trends for CEOs,' read the statement by company. While Kumar's compensation stood at $22.6 million in 2023, it was boosted by a significant one-time equity award granted at the time of his appointment. ' Kumar's realised compensation was significantly lower than his target direct compensation primarily because his 2024 PSU grants are scheduled to vest, subject to the satisfaction of performance criteria, in future periods,' said Cognizant. Cognizant's CEO-to-median employee pay ratio stood at 378:1 in 2024, according to the company's filing. This means Kumar earned 378 times more than the median Cognizant employee, reports NDTV. It further says that as of December last year, Cognizant employs about 336,800 people worldwide, including 241,500 in India and 42,800 in North America. Despite the dip in realised earnings, Kumar's compensation package reflects a steady rise in his salary, making him one of the highest-paid executives in the country. Kumar, who pursued engineering at Shivaji University, Kolhapur, followed by an MBA from Xavier Institute of Management, Bhubaneswar, has previously worked at Infosys, where he served as president from 2016 to 2022.
India.com
22-04-2025
- Business
- India.com
Cognizant CEO Ravi Kumar's salary package for 2024 was Rs 1370000000, but he actually got Rs…, due to…
Cognizant CEO Ravi Kumar's target compensation for FY24 was Rs 137 crore ($16.1 million). However, his actual earnings for the year were lower to Rs 70 crore ($8.2 million), according to a filing with the United States Securities and Exchange Commission (US SEC).Though it is 14% higher year-on-year (YoY), his realised salary is far short of the target. According to a Mint report it's mainly due to the performance-linked compensation. Cognizant CEO Salary Breakdown According to report by Mint Rs 137 crore package included: Base Salary: Rs 10.25 crore ($1.2 million), up 20% YoY. Annual Cash Incentive (ACI) Target: Rs 20.49 crore ($2.4 million), up 20% YoY. Performance Share Units (PSUs): Rs 64 crore ($7.5 million), up 9% YoY. Restricted Stock Units (RSUs): Rs 42.68 crore ($5 million), up 9% YoY. Why Was His Salary Lowered? Ravi Kumar's realised pay of Rs 70 crore was less mainly because of the timing of his performance share units (PSUs). These units, valued at Rs 64 crore in his target package, are designed to vest over time and will fulfill only after meeting specific performance criteria in future periods. Here's what the filing stated: 'Mr. Kumar's realised compensation was significantly lower than his target direct compensation primarily because his 2024 PSU grants are scheduled to vest, subject to the satisfaction of performance criteria, in future periods. His 2024 realised compensation consisted principally of his base salary, 2024 ACI award payout at 107.3% of target, and quarterly vestings of RSUs totalling approximately $4.49 million (₹37 crore).' CEO-to-Employee Pay Ratio The filing also stated a CEO-to-median employee pay ratio of 378:1 in FY24. Ravi Kumar earned 378 times the median salary of Cognizant employees globally. As of December 2024, Cognizant employed approximately 3,36,800 people, wherein 2,41,500 employees are in India and 42,800 employees in North America.
