Persistent Systems CEO’s ₹389 Cr Pay Hike Sparks Debate
By ThePip Desk
Persistent Systems CEO Sandeep Kalra’s ₹389 crore pay in FY26, a 162% surge, makes him India’s highest-paid IT executive, driven by stock options and rupee depreciation.
Sandeep Kalra, Executive Director and CEO of Persistent Systems, secured a record remuneration of ₹389 crore in FY26, marking a 162% increase and positioning him as India’s highest-paid IT executive. This substantial rise reflects a confluence of factors influencing executive compensation within the Indian tech sector.
The significant pay increase was primarily driven by two key elements: a 5.2% depreciation of the Indian rupee against the US dollar and a greater number of stock options exercised. Kalra’s earnings in the preceding fiscal year, FY25, stood at ₹148.09 crore.
Key Remuneration Figures
- FY26 Total Remuneration: ₹389 crore
- Increase from FY25: 162%
- FY25 Remuneration: ₹148.09 crore
- Portion from perquisites/stock options (FY26): 94%, or ₹366 crore
- Increase excluding perquisites: 44%
While a dominant 94% of his FY26 remuneration, approximately ₹366 crore, stemmed from perquisites and other payments linked to stock option exercises, this value remains distinct from his Cost to Company (CTC). Even without these perquisites, Kalra’s base remuneration experienced a 44% increase during the year, drawing compensation from both Persistent Systems and its US subsidiary, Persistent Systems Inc.
Employee Compensation & Company Health
In contrast to the CEO’s compensation, the median remuneration for employees at Persistent Systems was ₹16.76 lakh in FY26. This figure provides essential context for understanding the broader compensation landscape within the company.
- India Employee Salary Increase: Approximately 5.8% annually
- India Employee Salary Increase (with promotions): Approximately 6.4%
- Outside India Wage Increase: Around 3.2%
- Median Remuneration (Persistent Systems Inc.): $0.14 million, or about ₹1.22 crore
- Total Employees: 22,135
Persistent Systems reported strong financial performance, with employee benefit expenses rising 15.7% to ₹7,950 crore in FY26. The company’s net profit grew by 33.2% to ₹1,865 crore, while its revenue increased 23.5% to ₹14,748 crore, demonstrating robust operational growth.
Shareholder Approval and Future Limits
Looking ahead, Persistent Systems plans to seek shareholder approval at its 35th Annual General Meeting in July 2025. The company aims to raise the overall managerial remuneration limit from 11% to 23% of profits, a significant adjustment.
Additionally, the proposal includes allowing Kalra’s remuneration to exceed 5% but not surpass 21% of the company’s profits. This move to adjust remuneration caps underscores the strategic decisions being made at the highest levels concerning executive incentives and their alignment with corporate performance.