Wipro Shareholders Oppose CEO Thierry Delaporte’s Compensation

A significant number of Wipro’s public shareholders have expressed disapproval of the cash compensation package for CEO Thierry Delaporte, according to recent regulatory filings. Nearly 80 percent of shareholders voted against a resolution to award Delaporte $4.33 million in cash compensation, highlighting a rare instance of minority shareholder dissent regarding executive pay in the IT sector. Major public shareholders in Wipro include the LICI Gratuity Plus Income Fund, JP Morgan Chase Bank, and the SBI Arbitrage Opportunities Fund.

Despite this opposition, the resolution passed with almost 90 percent approval, largely due to Wipro’s high promoter shareholding of nearly 73 percent. Institutional Investor Advisory Services (IiAS), a proxy advisory firm, had advised shareholders to reject the resolution in a note dated May 16. IiAS argued that the compensation was excessive for a two-month period and questioned whether it was part of Delaporte’s initial employment terms. They stated that the payment seemed to cover basic professional responsibilities.

After Delaporte’s resignation as managing director and CEO on April 6, 2024, Wipro announced the $4.33 million cash compensation. The company justified this by citing Delaporte’s role in driving significant transformation, ensuring smooth transition, maintaining business continuity, and adhering to post-engagement obligations such as confidentiality and non-solicitation. Delaporte’s total compensation for the financial year 2023-24 was $20 million, making him the highest-paid CEO in India’s IT services industry.

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