Cog­nizant ex-CEO made $191m in 12-year ten­ure

Ma­jor­ity Of Com­pen­sa­tion Came In The Form Of Stocks & Op­tions, Re­veals Re­port

The Times of India (New Delhi edition) - - Times Business - Shilpa.Phad­nis @times­group.com of users check reg­u­larly dur­ing the morn­ing hours En­gage with and apps

Ben­galuru: Fran­cisco D’Souza, who stepped down as Cog­nizant CEO ear­lier this year, re­alised $191.4 mil­lion in to­tal com­pen­sa­tion dur­ing his ten­ure as CEO from 2007, a ma­jor­ity of which came in the form of stocks and op­tions, ac­cord­ing to a blog post by US com­pen­sa­tion re­search firm Equilar.

The fig­ure is sub­stan­tially more than the $104.3 mil­lion re­ported in the sum­mary com­pen­sa­tion table of Cog­nizant’s an­nual proxy state­ments for D’Souza. The dif­fer­ence arises mainly be­cause of the good per­for­mance of the stock dur­ing the pe­riod.

Dis­closed eq­uity values are made as of the grant date, while the re­alised values are made as of the com­pany’s most re­cent fis­cal year-end (the end of the eval­u­a­tion pe­riod). So, when the stocks pre­vi­ously granted vest, and if the stock

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value is higher at that point, the re­alised pay rises.

Alex Knowl­ton, se­nior re­search an­a­lyst at Equilar, noted that 2016 saw the largest dis­par­ity be­tween re­ported and re­alised pay, with the re­alised to­tal for the year nearly four times the amount of the re­ported pay in the sum­mary com­pen­sa­tion table.

In 2016, D’Souza’s re­alised pay was $32.9 mil­lion, while the re­ported pay was $8.3 mil­lion. The re­alised pay was higher than the re­ported pay in every year bar­ring in the se­cond year

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32.9 of his CEO ten­ure — 2008.

D’Souza had a phe­nom­e­nal ten­ure as CEO, dur­ing which time the com­pany’s rev­enue crossed those of Wipro and In­fosys. Dur­ing the pe­riod, the stock price trended up­wards quite sharply, reach­ing a peak in March 2018. His com­pen­sa­tion would have been heav­ily tied to per­for­mance, and con­se­quently, the stock grants would have been sig­nif­i­cant. It’s likely that through much of his ten­ure, he would have earned most of his re­al­is­able pay.

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