Cognizant CEO Ravi Kumar's compensation package crosses ₹137 Crore, but actual realization is less

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Cognizant CEO Ravi Kumar has witnessed his pay package substantially increase, with his goal pay package for 2024 amounting to ₹137 crore ($16.1 million). But actual earnings fell short, largely because of Performance Share Units (PSUs) awaiting vesting.

Points to Ponder:

✅ Overall Compensation: Kumar's compensation in FY24 increased to ₹70 crore ($8.2 million), up 14% year over year.

✅ Variable Compensation: His PSU awards will vest in subsequent periods, so his actual pay was less than the ₹137 crore objective.

✅ CEO-to-Median Pay Ratio: Kumar received 378 times the median Cognizant employee compensation, in line with industry executive compensation trends.

✅ Prior Compensation: In 2023, his overall compensation was ₹188 crore ($22.6 million), which was augmented by a one-time equity grant at the time of his appointment.

✅ Company's Rationale: Cognizant's Compensation Committee raised his target compensation by 11%, attributing it to performance and alignment with peer CEOs.

Even with the decline in realized earnings, Kumar is still among the top-paid executives, with Cognizant focusing on long-term performance-based incentives.

Source: NDTV, Times of India, Moneycontrol