Severance Package is the compensation and/or benefits employee is entitled to receive after employment is over. It can also include extended benefits, such as health insurance and outplacement assistance.
Wipro Chief Executive Officer Thierry Delaporte resigned on 6th April and Srinivas Pallia, a veteran of the company, took over as CEO and managing director from April 7, as announced by Wipro in a statement. The company said Delaporte was leaving to “pursue passions outside the workplace.”
According to the Economic Times report, Wipro CEO Thierry Delaporte is set to get a separation payment of Rs 92.1 crore (or about $11 million) after his ahead-of-schedule exit. Delaporte became one of the top executives from the sector, who received higher severance packages. Delaporte’s total compensation in FY23 was just over $10 million.
Check Former CEO’s Severance Packages
Many companies have earlier also paid huge amounts to their CEOs while leaving the company. Take a look at Severance Packages Of various companies former CEOs.
Big IT firms like Tata Consultancy Services (TCS), Cognizant and Wipro paid severance packages within the range of Rs 48 crore to Rs 92 crore.
Former CEO and MD of TCS, Rajesh Gopinathan received Rs 48 crore as a severance package when he left the company in 2023.
As per TCS annual report, Gopinathan was withdrawing a salary of Rs 29.1 crore in FY23.
Former CEO of Cognizant, Brian Humphries, resigned in January 2023, and was a special advisor until March 2023. His severance benefits included three components: like a base salary, annual cash incentives and accelerated vesting of stock awards. It amounted to $6.6 million, according to regulatory filings from the company, reported Business Today.
What Is Severance Package ?
Severance Package is the compensation and/or benefits employee is entitled to receive after employment is over. It can also include extended benefits, such as health insurance and outplacement assistance.
Delaporte, whose five-year term was originally set to end in July 2025, said that he was “proud of the solid foundation” he had helped to lay for Wipro.
Wipro‘s rivals have also seen changes at the top. Industry leader Tata Consultancy Services promoted insider K Krithivasan to CEO last year after Rajesh Gopinathan quit abruptly, while Infosys veteran Mohit Joshi took over as Tech Mahindra CEO in December 2023.
(With inputs from Reuters)