The board of IT major Tata Consultancy Services (NYSE:TCS) has decided to pay Rs 8 crore as commission to Tata group chairman Ratan Tata for financial year 2012, nearly Rs 6 crore more than what he was paid in FY11. TCS paid Rs 2.4 crore as commission to Tata for FY11.
The company in its annual report said that commission is decided each year by the board of directors and distributed amongst the non-executive directors based on their attendance and contribution at the board and certain committee meetings.
The country's largest software exporter TCS posted a healthy 21.9%-rise in net profit for 2011-12 at Rs 10,638.2 crore and said it is on track to outperform the industry revenue growth of 11-14% set by industry body Nasscom for 2012-13.
The company also became the first Indian IT company to cross the USD 10-billion milestone by posting annual revenues of USD 10.17 billion in 2011-12. The board of directors also count the the time spent on operational matters other than at meetings for determining the commission, the annual report said.
Ratan Tata joined the group in 1962 and was named chairman of Tata Sons in 1991. TCS also decided to pay Rs 6 crore commission to vice-chairman S Ramadorai in FY'12 compared to Rs 1.6 crore paid for FY11.The commission of TCS managing director and CEO also increased to Rs 6 crore for FY12 compared to Rs 4 crore paid for FY11.