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.
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