Did TCS CEO Really Earn Rs 26.5 Crore Amid Layoffs?
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Synopsis
TCS CEO K. Krithivasan's staggering Rs 26.5 crore annual compensation has ignited outrage among employees. With massive layoffs on the horizon, is this pay package reflective of corporate priorities? Join us as we explore the implications of these decisions on the workforce and the tech industry.
Key Takeaways
- CEO K. Krithivasan's compensation reached Rs 26.5 crore.
- His pay increased by 4.6 percent from FY24.
- TCS announced layoffs affecting 12,261 employees.
- The layoffs are driven by a shift in operations.
- TCS is prioritizing AI and new technologies.
New Delhi, July 30 (NationPress) The renowned Information Technology firm Tata Consultancy Services (TCS) has disclosed that CEO K. Krithivasan's annual remuneration reached Rs 26.5 crore, reflecting a 4.6 percent rise from the previous fiscal year, as detailed in TCS's annual report for FY25.
Krithivasan's compensation package includes a base salary of Rs 1.39 crore, Rs 2.12 crore in benefits, perquisites, and allowances, along with a substantial Rs 23 crore in commission, according to the latest annual report.
This revelation has sparked outrage among netizens and IT professionals, highlighting that his remuneration is 329.8 times that of the median employee salary.
A user named Praveen Chakravarty expressed on X, “TCS CEO pay: Rs 35 cr; Top 5 leadership: Rs 40 cr; Avg employee: Rs 15 lakh. If top 100 took small pay cuts, it can save 12,000 jobs. Their lives won’t be terrible at Rs 2.5 cr pay vs Rs 3 cr. For 12,000 families, lives will be miserable at 0 pay vs Rs 15 lakh. AI is real; mass layoffs need not be.”
Other high-ranking officials also received significant salaries. Former Chief Operating Officer and Executive Director of TCS, NG Subramaniam, earned Rs 11.55 crore until May 2024 before stepping down. His compensation included a base salary of Rs 30 lakh, Rs 7.24 crore in benefits, and Rs 4 crore in commission.
Additionally, non-executive directors Hanne Sorensen and Pradeep Kumar Khosla each received Rs 2.74 crore. Independent director Keki Mistry's total compensation amounted to Rs 3.06 crore, which encompassed Rs 3 crore in commissions and ₹5.7 lakh as sitting fees.
N Chandrasekaran, the Chairman, received Rs 2.1 lakh as sitting fees without any commission.
In a controversial move, TCS, the largest IT services corporation in India, announced plans to lay off approximately 2 percent, or 12,261 employees, from its global workforce this fiscal year, citing a strategic shift in operations. The layoffs will primarily affect middle- and senior-grade personnel.
The IT giant clarified that these layoffs are not driven by cost-cutting or automation, but rather due to the challenges in redeploying talent whose current roles no longer align with the company's evolving skill demands.
TCS is currently prioritizing the large-scale implementation of artificial intelligence (AI) and other innovative technologies, significantly altering demand within the IT sector.
Point of View
My perspective aligns with the ethos of NationPress. The significant disparity between top executives' earnings and the median employee salary at TCS raises critical questions about corporate responsibility and the ethical implications of leadership compensation, especially during times of layoffs. It's essential to balance profitability with the welfare of employees, ensuring that companies remain accountable and fair in their practices.
NationPress
31/07/2025
Frequently Asked Questions
What is the annual compensation of TCS CEO K. Krithivasan?
TCS CEO K. Krithivasan's annual compensation is Rs 26.5 crore.
How much did Krithivasan's pay increase from last year?
Krithivasan's pay increased by 4.6 percent from the previous year.
Why is TCS laying off employees?
TCS is laying off employees due to a strategic change in operations, not motivated by cost-cutting or automation.
How many employees are affected by the layoffs?
Approximately 12,261 employees, or 2 percent of the workforce, will be laid off.
What technologies is TCS focusing on?
TCS is focusing on the large-scale deployment of artificial intelligence (AI) and other new technologies.
