Here's how much money Cognizant CEO Ravi Kumar S got in 2023

Cognizant CEO Ravi Kumar S's compensation for the 2023 financial year has sparked debate, with the company's recent proxy statement filing revealing he received a staggering $22.5 million. This substantial amount comes at a time when Cognizant's financial performance has been less than stellar, showing a 0.3% decline in constant currency revenue, totaling $19.4 billion for the year.

Kumar's compensation package includes one-time awards received upon assuming the CEO role, such as PSUs (performance stock units) and RSUs (restricted stock units), along with a cash sign-on bonus.

Wage Gap and Employee Sentiment
The stark contrast between CEO pay and employee compensation is evident, with the CEO pay ratio compared to employees based in India standing at 1647:1. The worldwide median employee's annual total compensation ratio is 556:1.

The median annual employee compensation in India is $13,735, while the worldwide median annual compensation is $40,660. This widening wage gap, coupled with the recent announcement of Cognizant deferring increments by four months, has fueled discontent among the company's employees.

Previous CEO's Compensation
Kumar's predecessor, Brian Humphries, received a total SEC compensation of approximately $4.2 million in 2023. This included his base salary through the effective date of his termination on March 15 last year.

Explanation of SEC Compensation
The SEC compensation reflects the actual base salary, annual cash incentive (ACI), any cash bonuses, and the grant date fair value of all RSUs and PSUs granted in a given year. It also includes all other compensation, including perquisites, required to be reported under SEC rules.

However, Kumar's realized compensation for 2023 was $7.2 million, significantly lower than his target direct compensation, primarily due to his 2023 PSU grants and ACI award payout amount being lower than the target amount.

CFO's Compensation
Cognizant CFO Jatin Dalal's target direct compensation of $5.2 million comprised a base salary of $750,000, ACI target of $750,000, PSUs of $1.8 million, and RSUs of $1.8 million. Dalal's 2023 SEC compensation was lower than his target direct compensation primarily because he received only a pro rata portion of his annual base salary based on his employment commencing in December 2023.

The disparity in compensation between top executives and employees, coupled with Cognizant's underwhelming financial performance, has raised concerns among stakeholders. The company's response to employee discontent and its future compensation policies will be closely watched.