Cognizant CEO Ravi Kumar was paid a total compensation of $16.1 million in 2024, an 11% jump from last year. The pay hike reflects the company’s strong support of his leadership as he leads the transformation to position Cognizant among the top four IT services firms worldwide by 2027.
In 2023, Cognizant CEO Ravi Kumar took home a higher total of $22.6 million that included a special equity award given at the time of his appointment. The 2024 compensation package, however, shows a normalized structure determined by performance and annual incentives.
Breakdown of 2024 Compensation
In Cognizant’s recent regulatory filing, the 2024 compensation for Cognizant CEO Ravi Kumar was mainly made up of:
- Base salary
- Annual Cash Incentive (ACI) payout at 107.3% of target
- Quarterly vesting of $4.49 million Restricted Stock Units (RSUs)
The company also stated, in its disclosure, that the 2024 performance-based stock units (PSUs) due to Kumar were still pending their vesting date and depended upon future performance objectives, resulting in his actual pay being far lesser than the maximum target amount.
Leadership Bench: Substantial Compensation Through the C-Suite
Cognizant’s top executive ranks also include CFO Jatin Dalal, who joined the company in late 2023 after his tenure at Wipro. Dalal’s base salary rose sharply to $750,000, along with a $150,000 bonus as part of his $300,000 sign-on award. His stock awards soared to $7.7 million, up from $3.07 million.
Other key executives in Cognizant’s leadership team include:
- John Kim, Chief Legal Officer
- Surya Gummadi, President – Americas
- Ganesh Ayyar, Intuitive Operations and Automation President
Cognizant Supports Ravi Kumar’s Global Leadership Vision
The board of the company had full confidence in Cognizant CEO Ravi Kumar, reinforcing backing for his strategic vision. Following years of subpar performance, Cognizant is in the midst of a multi-year transformation under his guidance, with a firm emphasis on digital services, automation, and operational effectiveness.
Kumar’s ambitious goal features a target to position Cognizant in the top four global IT services providers by 2027, competing head-on with industry behemoths such as Accenture, TCS, Infosys, and Wipro.
Final Thoughts
The pay increase announcement marks Cognizant’s confidence in Ravi Kumar’s leadership to take the company into its next growth phase. With the company building up its leadership bench and focusing on execution, Cognizant CEO Ravi Kumar is at the helm of what may be one of the most dramatic turnarounds in the IT services sector.
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