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Tech Mahindra Tops the list of Nifty Companies with Highest Pay Gap

Tech Mahindra Tops the list of Nifty Companies with Highest Pay Gap

Once an IT giant, Tech Mahindra, is now witnessing teething troubles. Thanks, to the stories like employee’s retrenchment, business disruptions, the gap in median salary (among the highest paid executives and average employee) that publishes more than often. These controversies have definitely done irreparable damage to the brand.

Topping the list of income inequalities (between the high-end executive and an average employee), it seems that the fate of the company is in dire straits. Here’s a data supporting it:-

CP Gurnani, the managing director and CEO of Tech Mahindra has received pay that is 3538 times higher than the median salary of an average employee of Tech Mahindra. The jump is huge from FY 2016 when his salary was 867 times the median pay. This is the tip of the iceberg.

Are there any other companies following the same suit?

Well, there are hordes of other companies on the NIfty that offer fat salary package to its CEO and directors like Sun TV, Hero MotoCorp, Apollo Tyres, Lupin, Amara Group, Divis Laboratories, Larsen & Tubro Ltd, etc. but Tech Mahindra has the highest pay gap.

What lies beneath the story?

The actual problem is not the huge gap between the salaries. Actually, the analysts predict that the company’s performance is in the doldrums. Here’s a real picture

Tech Mahindra’s operating profit has been increased to 8.2% (a single digit) in the March quarter, from 18%, two years ago. The revenue has declined a huge as compared to its peers (Infosys, laid back Wipro and TCS). Further, the company is showing no signs of recovery.

What the management has to say?

 Though the company’s management is refusing to believe in such stories, by complaining global conditions, massive transformation in the IT industry, geo-political issues, consumer demand and technological revolutions are responsible towards the decline. But what it has to say about the lowering headcount?

So, what’s the future ahead?

The authorities at Tech Mahindra have reported that the situation is under control and the company will soon be on a track. But, we believe future is uncertain and in this era of merger and acquisition, you may not know what is going to happen next.

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