Cognizant CEO Ravi Kumar’s targeted package Rs 137 crore; earned Rs 70 crore in FY24; know why

The targeted pay package of Ravi Kumar S, CEO of IT company Cognizant, stood at Rs 137 crore in the financial year 2024 (FY24), according to the company's filing with the United States Securities and Exchange Commission (US SEC). However, he earned Rs 70 crore, almost half of the targeted package.

Why did Kumar receive less than the targeted package?

According to the document, Kumar's yearly salary increased to $8.2 million (Rs 70 crore) in 2024, an almost 14 per cent increase over the year before. Kumar's actual salary was less than the desired direct compensation, according to the company's proxy statement. The main reason for this is that his grants for 2024 Performance Share Units (PSU) are set to vest in later periods, provided he meets certain performance requirements.

Compensation breakdown of Rs 137 crore package

Base salary: Rs 10.23 crore
ACI target: Rs 20.49 crore
Performance share units: Rs 64 crore
Restricted stock units: Rs 42.68 crore

Ravi Kumar's profile

Kumar joined Cognizant in 2003. In his role as CEO, Ravi sets the strategic direction of the company, promotes Cognizant’s client-first culture, and focuses on ensuring sustainable growth and driving long-term shareholder value.

Before Cognizant, he served as president of Infosys from 2016 to 2022, where he led the global services organisation across all industry segments and served as chairman of the Board of Infosys BPM Ltd.

Previously, Kumar has worked with PricewaterhouseCoopers, Cambridge Technology Partners, Oracle and Sapient (now Publicis Sapient). 

He holds a bachelor’s degree in engineering from Shivaji University and an MBA from Xavier Institute of Management, India.