TCS raises salaries as workforce shrinks and CEO pay rises

Tata Consultancy Services (TCS) has announced salary increases for its workforce while reporting a significant reduction in its overall employee headcount and a rise in its CEO's compensation. The company's annual report for the fiscal year ending March 2026 reveals these developments amid a corporate restructuring focused on artificial intelligence.

CEO K Krithivasan's total remuneration increased by 6.3% to Rs 28.1 crore for FY26. This package included a base salary of Rs 1.67 crore, benefits and allowances worth Rs 1.43 crore, and a commission of Rs 25 crore. His compensation is 332.8 times the median salary of TCS employees. Chief Operating Officer Aarthi Subramanian earned Rs 18.33 crore, which comprised a Rs 1.5 crore base salary, Rs 1.83 crore in benefits, and a Rs 15 crore commission.

Concurrently, TCS reduced its global workforce by 23,460 employees over the financial year. The total headcount now stands at 584,519, down from 607,979 at the end of FY25. The company described this reduction as part of restructuring and workforce realignment measures aimed at building a "future-ready organization" with an increased focus on AI and new technologies. It clarified that the...