BENGALURU: Cognizant CEO Ravi Kumar S received $22.5 million as compensation for FY23, as shown in the company’s 2024 proxy statement filing with the US Securities and Exchange Commission. Kumar, who previously served as the president of Infosys, assumed the role of CEO at Cognizant in January of the previous year.
Cognizant’s financial performance in 2023 was underwhelming, with the company reporting a 0.3% decline in constant currency revenue, amounting to $19.4 billion.This lackluster performance was partly due to the ongoing weakness in demand that has been affecting the IT sector as a whole.
The disparity between CEO pay and employee compensation is striking, with the CEO pay ratio compared to employees based in India standing at 1647:1, and the worldwide median employee’s annual total compensation ratio being 556:1. The median annual employee compensation in India is $13,735, while the worldwide median annual compensation is $40,660. This widening wage gap, along with the recent announcement of Cognizant deferring increments by four months, has not been well-received by the firm’s employees.
Kumar’s predecessor, Brian Humphries, received a total SEC compensation of approximately $4.2 million in 2023, which consisted of his base salary through the effective date of his termination on March 15 last year. Kumar’s 2023 SEC compensation of $22.5 million was substantially higher than his target direct compensation due to the inclusion of the one-time awards that he received upon becoming the CEO of the company.