In accordance with the employment agreement between Wipro and Delaporte, the company is required to pay him a severance package of 12 months’ base salary upon termination of his employment without cause. This payout will be disbursed over a 12-month period following the termination date. However, these payments will cease if Delaporte obtains new employment or engages in consulting services for any company within the 12-month period following his departure from Wipro.
In comparison to other top executives in the IT services sector, such as those from Tata Consultancy Services (TCS) and Cognizant, Delaporte’s severance package falls within the range of ₹48 – 92 crore. This places him among the industry executives with lucrative exit contracts guaranteeing substantial payouts upon departure.
Industry experts have commented on the practice of severance packages for CEOs in the IT services sector. As per an Economic Times report, CEO of EIIRTrend, Pareekh Jain, stated that when the tenure of an IT Services company’s CEO is abruptly cut short, the exit compensation is determined by the contract or industry practices, which could amount to up to one year of their salary.
Srinivas Pallia has been appointed as Wipro’s new CEO, succeeding Delaporte. The company has also undergone other recent developments, including the launch of Crick-it by HT, a comprehensive platform for cricket enthusiasts, and the rollout of passkeys for iPhone users by WhatsApp.
