Thierry Delaporte, the departing CEO of Wipro, is set to get a staggering Rs 92.1 Crore severance package

After leaving the position of CEO of Wipro prematurely, Thierry Delaporte is expected to get a sizable separation payout of Rs 92.1 crore (about USD 11 million). Wipro is the fourth-largest outsourcing company in India.

With Delaporte’s quick departure, the number of senior executives in India’s increasingly international IT sector who have negotiated strong severance packages that solidify their financial safety nets in the event of unplanned layoffs is increasing.

The complexities of Delaporte’s employment agreement, which requires a severance compensation equal to 12 months’ basic salary in the case of termination by the firm without reason, are said to be the source of his large severance settlement, according to an article published in The Economic Times. This amount, which is due over the course of a year after termination, is evidence of the hefty compensation packages that are typical of high-level IT executives.

Prominent IT leaders’ employment contracts are analyzed, and the results show a continuous trend of large departure compensation. Severance payments ranging from Rs 48 crore to Rs 92 crore have been given to executives at companies like Tata Consultancy Services (TCS) and Cognizant, demonstrating the industry’s willingness to pay out corresponding compensation to leaving CEOs.

According to the research, industry experts emphasize that departure pay should be in line with contractual commitments or accepted industry standards when CEO tenures at IT services companies are unexpectedly shortened. These procedures are designed to provide departing executives with fair financial assistance, especially when there may be limited opportunities for employment in the industry in the future.
Following the departure of former TCS CEO Rajesh Gopinathan in 2023, charges worth Rs 48 crore were approved, demonstrating the company’s dedication to upholding its contractual responsibilities.

In a similar vein, former Cognizant CEO Brian Humphries left the company with a USD 6.6 million severance package that included basic pay, yearly bonuses, and early stock vesting.