At present, the annual package of CEO of an IT company is around 60 crores.
If you look at the salary of freshers of the same company, then it starts from only 25 thousand rupees.
In 10 years, there has been a jump of 835 percent in the salary of CEOs.
New Delhi. Often you must have read and heard such news that the CEO of such company gets a package of hundreds of crores, but have ever looked at the salary of a fresher working in the same company. You will be surprised to know that there is a difference of about 5 zeros between the CEO of a company and the salary of freshers.
Moneycontrol According to a report, the biggest difference in the salary of CEOs and freshers is visible in IT companies. At present, the annual package of CEO of an IT company is around 60 crores. That is, he is getting an average salary of 5 crores every month. In comparison, if we look at the salary of freshers of the same company, then it starts with only 25 thousand rupees.
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The gap widened in a decade
It is not that the difference in salary between CEO and freshers has suddenly become so much. In the last decade, there has been a huge jump in this and the salary gap has widened into a gulf. 10 years ago, where a fresher used to get a package of 2.75 lakhs annually, the salary of a CEO used to be around Rs 80 lakhs. If it is seen as the average difference between the two, then in the year 2012, the difference between the two was Rs 3.3 crore. This has increased to Rs 31.4 crore in the year 2022.
With this jump, it became clear that in these 10 years, there has been a jump of 835 percent in the salary of a CEO, while the salary of a fresher has increased by only 45 percent. The discussion about the salary of the CEO started when the annual package of Infosys CEO Salil Parekh was revealed. The company had told in May that Parekh is reappointed as CEO till March 2027. Along with this, his package was also increased by 88 percent to Rs 79.75 crore.
Biggest difference in Wipro, lowest in TCS
If we look at the difference between the salary of CEOs and freshers of all IT companies, then the widest gap is seen in Wipro. The salary ratio of CEO and freshers in Wipro is 2,111, while that of Infosys is 1,973. In HCL the difference between CEO and freshers is 1,020 and L&T has the lowest ratio of 676, Tech Mahindra has 644 and TCS has the lowest ratio of 619.
Life gets stuck in bread, cloth and house
If you look at the salary of a fresher and his daily expenses, then his entire money goes only in the jugaad of roti, cloth and house. The average fare in a metro city is 10 to 12 thousand rupees. In this, the cost of internet, maintenance and electricity will be around 5 thousand rupees. Even if you cook the food yourself, then 7-8 thousand rupees will be spent. Even if you share your expenses with someone, the average expenditure will be 20 to 22 thousand rupees. Apart from this, 2 thousand rupees will also be for your transportation. In this way, out of your 25 thousand salary, only 1 thousand rupees are seen being saved every month. That is, every weekend you can spend Rs 250 on yourself.
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why is there so much gap
Moneycontrol spoke to many experts on this and many shocking facts came out. The first reason is that every year lakhs of freshers come to the IT sector. This figure is about 15 lakh, out of which only 3.60 lakh got the job. Another reason is lack of skills. There is a dearth of skills for freshers. The technology has changed a lot now, but the freshers who are coming only know about 10 years old technology. Therefore, big IT companies give training to these freshers for the first year. In this, the company’s money is spent, while its earnings remain low. People associated with the industry and startups say that even though the initial salary for freshers is low, but after training, their increment has been seen up to 50 percent. It totally depends on their learning ability and skill.
Why CEO gets so much salary
If we look at the CEO’s salary figures, then Salil Parekh of Infosys gets the highest package of around 80 crores, while the CEO of Wipro takes 79 crores annually. Their huge package remains because of the big name and face. Experts say that the trust of the company’s shareholders and investors in them also plays a big role in this.
More part of salary from company stake
The package of crores of the CEO of a company is not only a part of his salary, but most of it comes from the stake of the company he got. Aesop has a big part in it. In Parekh’s package, his salary is Rs 6 crore, then Rs 12 crore is available as incentive. Apart from this, Rs 52 crore belongs to ESOP. ESOP means your stake in the company’s shares.
FIRST PUBLISHED : November 03, 2022, 14:23 IST