Cognizant CEO Ravi Kumar’s compensation increased in the fiscal year 2024, according to the company’s recent filing with the US Securities and Exchange Commission (SEC). As per the filing, Kumar’s annual compensation rose to $8.2 million in 2024, marking nearly 14% rise from the previous year. The company's proxy statement noted that Kumar's realized compensation was lower than the target direct compensation. This is primarily because his 2024 Performance Share Unit (PSU) grants are scheduled to vest in future periods, contingent upon meeting specific performance criteria.
Kumar assumed the role of CEO at Cognizant in January 2023, after serving as president at Infosys. During the 2024 fiscal year, Kumar’s direct compensation for 2024 was increased to $16,100,000, a 11% increase vs. 2023.
What SEC proxy filing said about Cognizant CEO’s salary
“The Compensation Committee, at its meeting in February 2024, evaluated Mr. Kumar's prior year performance and the updated information provided by Pay Governance for CEOs in the Company's peer group. Based on these considerations, the Compensation Committee determined that Mr. Kumar's target direct compensation for 2024 should be increased to $16,100,000 (11% increase vs. 2023) to reflect his performance in his first year as CEO and to better align his target compensation with CEOs in the 2024 peer group, taking into account compensation trends for CEOs. The specific components of Mr. Kumar’s 2024 target direct compensation were comprised of: (i) base salary of $1,200,000 (20% increase vs. 2023), (ii) ACI target of $2,400,000 (20% increase vs. 2023), (iii) PSUs of $7,500,000 (9% increase vs. 2023) and (iv) RSUs of $5,000,000 (9% increase vs. 2023),” the proxy filing reads.
“Mr. Kumar's realized compensation was significantly lower than his target direct compensation primarily because his 2024 PSU grants are scheduled to vest, subject to the satisfaction of performance criteria, in future periods. His 2024 realized compensation consisted principally of his base salary, 2024 ACI award payout at 107.3% of target and quarterly vestings of RSUs in the aggregate amount of approximately $4,492,000”, it further added.
Kumar assumed the role of CEO at Cognizant in January 2023, after serving as president at Infosys. During the 2024 fiscal year, Kumar’s direct compensation for 2024 was increased to $16,100,000, a 11% increase vs. 2023.
What SEC proxy filing said about Cognizant CEO’s salary
“The Compensation Committee, at its meeting in February 2024, evaluated Mr. Kumar's prior year performance and the updated information provided by Pay Governance for CEOs in the Company's peer group. Based on these considerations, the Compensation Committee determined that Mr. Kumar's target direct compensation for 2024 should be increased to $16,100,000 (11% increase vs. 2023) to reflect his performance in his first year as CEO and to better align his target compensation with CEOs in the 2024 peer group, taking into account compensation trends for CEOs. The specific components of Mr. Kumar’s 2024 target direct compensation were comprised of: (i) base salary of $1,200,000 (20% increase vs. 2023), (ii) ACI target of $2,400,000 (20% increase vs. 2023), (iii) PSUs of $7,500,000 (9% increase vs. 2023) and (iv) RSUs of $5,000,000 (9% increase vs. 2023),” the proxy filing reads.
“Mr. Kumar's realized compensation was significantly lower than his target direct compensation primarily because his 2024 PSU grants are scheduled to vest, subject to the satisfaction of performance criteria, in future periods. His 2024 realized compensation consisted principally of his base salary, 2024 ACI award payout at 107.3% of target and quarterly vestings of RSUs in the aggregate amount of approximately $4,492,000”, it further added.
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