TCS Chief Krithivasan's FY25 Pay Package Increases by 4.6% to Rs 26.5 Cr

K Krithivasan, CEO and Managing Director of Tata Consultancy Services (TCS), saw his pay package increase by 4.6 percent to ₹26.5 crore for the financial year ended March, compared to ₹25.35 crore the previous year, according to the company's latest annual report.

Key Highlights

• Krithivasan's compensation includes ₹1.39 crore base salary, ₹2.12 crore allowances, and ₹23 crore commission.
• TCS deferred general employee salary hikes due to global economic uncertainties and tariff concerns.

Krithivasan's salary increased from ₹1.27 crore to ₹1.39 crore for fiscal year 2025, after two years at the helm. He received ₹2.12 crore in benefits, perquisites, and allowances, and ₹23 crore in commission. His pay ratio to the median employee remuneration is 329.8.

The CEO's pay increase is almost identical to the wage increases TCS provided to its employees last year. According to the annual report, the average annual increase was between 4.5 and 7 percent, with top performers receiving double-digit increases in India.

However, after accounting for promotions and other event-based compensation revisions, the total increase for the year is expected to be between 5.5 and 7.5 percent. Employees outside India received wage increases ranging from 1.5 to 6%.

The increase in remuneration is consistent with market trends in the respective countries. To ensure that remuneration reflects the company's performance, performance pay is linked to organisational performance as well as individual utilisation, according to TCS.

The median remuneration of employees increased by 6.3 percent last fiscal year. TCS had 6,07,979 employees in March.

In his letter to shareholders, Krithivasan described the current geopolitical and macroeconomic environment as'very challenging'. He also stated that significant innovation is taking place in the AI ecosystem, including infrastructure, data platforms, models, and AI-native enterprise applications. 'These innovations are forcing businesses to invest in technology modernization and rapidly adopt AI to meet changing customer expectations.

Customers are also shifting from a use-case-based approach to ROI-driven AI scaling. TCS is assisting them by establishing AI Centers of Excellence, AI Labs for technology experimentation, and developing safe, secure, and scalable GenAI-as-a-service platforms, among other things.