Page 70 - Appreciating Organization's Biggest Assets
P. 70

Annual        Market       Annual        Market
          Company      salary of    Cap 2022      salary of    Cap 2012
                      CEO 2022                   CEO 2012
            HCL          123 cr       28.45 cr      8.4 cr       63.70 cr

           Wipro         64 cr        21.54 cr      5.1 cr       14.41 cr
           Infosys      79.75 cr      63.99 cr       80 L        19.68 cr

           Tech M        29 cr         1 Lcr         1 cr        17.66 cr
            TCS          34 cr        11.76 cr       8 cr        36.54 cr




















        By  observation,  it  is  difficult  to  be  putting  any  efforts  to  achieve
       interpret the correlation between  profitability  whereas  long  term
       compensation  of  CEO  to  that  of  incentives will motivate executives
       total  value  of  company’s  shares  of  in  generating  firm’s  market  value
       stock. For example, from the above  hence variable pay can be linked to
       data represented in graphs, HCL’s  firm’s performance.
       market cap is higher in 2012 although   Executive  compensation  usually
       the compensation to the CEO’s was   comprises of a combination of four
       less compared to 2022 data whereas   components:
       market cap for HCL in 2022 is less
       even after highest compensation     Annual base salary
       paid to the CEO. Although the size   Annual incentive/ bonus plan
       of  the  firm  has  a  positive  relation   tied to short-term performance
       with  that  of  remuneration,  fixed   measures
       component of compensation does
       not  have  significant  impact  on   Long-term incentives consisting
       firm’s  performance  as  they  won’t   of a mix of restricted stock, stock


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