TCS to pay Rs 8 cr commission to Ratan Tata for FY'12
New Delhi: The board of IT major Tata Consultancy Services 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 FY'11.
TCS paid Rs 2.4 crore as commission to Tata for FY'11.
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.
Country's largest software exporter TCS posted a healthy 21.9 percent 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 percent set by industry body Nasscom for 2012-13.
The company also became the first Indian IT company to cross the ten billion dollar milestone by posting annual revenues of USD 10.17 billion in 2011-12.
The board of directors also count 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 in FY'12 compared to Rs 1.6 crore paid for FY'11.
The commission of TCS Managing Director and Chief Executive Officer also increased to Rs 6 crore for
FY'12 compared to Rs 4 crore paid to him for FY'11.