**IT sector headwinds leave a mixed mark on CEO remuneration in FY26**
Amid weak spending and geopolitical challenges, CEO remuneration at India’s leading IT companies has taken a hit in FY26, with some top executives seeing their paychecks decrease by as much as 15%.
The industry has faced significant headwinds, including weak client spending, geopolitical uncertainty, and lower variable payouts. According to a recent survey, the average CEO compensation at India’s top IT companies has dropped by around 5% compared to FY25.
Polarized Impact on CEO Remuneration
The impact on CEO remuneration has not been uniform across the board. While some CEOs have seen their pay decrease by as much as 15%, others have managed to maintain or even increase their compensation. This disparity highlights the uneven nature of the challenges faced by the IT sector.
Companies like Infosys, led by CEO Salil Parekh, have seen their revenues grow despite the tough business environment. As a result, Parekh’s compensation has remained relatively stable, with the company announcing a 5% increase in his base salary. However, other CEOs, such as those at Wipro and HCL Technologies, have seen their pay decrease due to the company’s struggling performance.
Variable Payouts Take a Hit
One of the primary factors contributing to the decline in CEO remuneration is the reduction in variable payouts. Variable payouts are a key component of a CEO’s compensation package, accounting for a significant portion of their overall remuneration.
However, with many IT companies struggling to meet their revenue targets, the number of variable payouts has decreased significantly. This has resulted in a corresponding decrease in CEO compensation, with some top executives missing out on their bonus payments altogether.
What this means
The mixed impact on CEO remuneration in FY26 serves as a reminder of the challenges facing the IT sector. As the industry continues to navigate the tough business environment, CEOs and board members will need to be mindful of their compensation packages and the factors that influence them. With companies prioritizing cost-cutting measures and reduced spending, the future of CEO remuneration remains uncertain.
