HCLTech CEO C Vijayakumar's total remuneration soared to $18.13 million in FY26, marking a 67% increase primarily fueled by long-term incentives and stock options.
- CEO pay surged 66.9% to $18.13 million in FY26
- Increase mainly from long-term incentives and RSU gains
- Remuneration is nearly 292 times median employee pay
What happened
In the fiscal year 2025-26, HCLTech CEO and Managing Director C Vijayakumar's total remuneration jumped to $18.13 million, a steep 66.9% increase from the previous year. This compensation was primarily drawn from his salary at HCL America Inc., a step-down wholly owned subsidiary based in the US.
The substantial hike was led by long-term incentive (LTI) components and the value of Restricted Stock Units (RSUs) exercised during the year, which together accounted for the majority of his pay package. Excluding these, his remuneration rose by 22.86%, with a base salary of $2.48 million and a $2 million performance-linked bonus.
Why it matters
Vijayakumar's pay places him at the top tier of CEO compensation in India's IT industry, notably surpassing peers at major companies such as Tata Consultancy Services, Infosys, and Wipro. This highlights HCLTech's strategic use of equity incentives to reward leadership performance and retain top talent amid competitive market pressures.
However, the spike in executive compensation contrasts with the company's financial performance, which showed a 4.3% decline in net profit despite an 11.18% increase in revenue. Additionally, Vijayakumar's pay was nearly 292 times the median remuneration of HCLTech's global workforce, raising questions on pay disparity.
What to watch next
Observers will be monitoring how HCLTech balances executive rewards with broader employee compensation, especially as median employee pay rose by just 5.4% in the same period. The company’s approach to incentives and governance practices could influence investor and stakeholder sentiment going forward.
Future financial results and performance metrics will also be critical to justify the rising executive pay, particularly in the context of evolving market conditions and industry competition. Tracking CEO compensation trends across Indian IT firms will provide further insight into sector-wide executive pay dynamics.