Compensation InsightHow Tech Mahindra Pays
Band-based compensation structure (U1–CEO), location-adjusted pay estimates for 23 global offices, equity programs (ESOP-2014/2018/PSP-2025), variable pay, insider trades, and executive compensation.
Band Hierarchy
Tech Mahindra uses a U/P/RG/E band system. The U bands (U1-U4) cover entry-level to senior IC roles, P bands (P1-P2) cover leads and mid-management, E1 is director-level, RG bands (RG1-RG2) cover VP and SVP leadership, and E2-E3 cover executive and CXO-level roles. The CEO sits above the band structure.
| Band | Title | Track | Experience | IC Examples | Mgmt Examples |
|---|---|---|---|---|---|
| U1 | Trainee / Associate Trainee | Entry IC | 0–1 years | Graduate Engineer Trainee, Associate Trainee, Junior Support Associate | Not typically a people-manager band |
| U2 | Associate Software Engineer / Analyst | IC | 1–3 years | Associate Software Engineer, QA Engineer, Business Analyst, Associate Analyst | Individual contributor |
| U3 | Software Engineer / Senior Analyst | IC | 2–5 years | Software Engineer, Senior Associate, Senior Analyst, Developer | Senior individual contributor |
| U4 | Senior Software Engineer / Lead Engineer | IC Lead | 5–8 years | Senior Software Engineer, Lead Engineer, Module Lead, Senior Test Engineer | Small-team technical lead in some orgs |
| P1 | Tech Lead / Project Lead / Project Manager | Lead / First-line manager | 7–11 years | Tech Lead, Lead Consultant, Solution Lead | Project Manager, Scrum Master, Project Lead |
| P2 | Architect / Senior Manager / Delivery Manager | Senior IC / Manager | 10–15 years | Architect, Principal Consultant, Senior SME | Senior Manager, Delivery Manager, Program Manager |
| E1 | Director / AVP / Principal Architect | Director-level | 13–18 years | Principal Architect, Distinguished SME, Enterprise Architect | Director, AVP, Large Program Head |
| RG1 | VP / Delivery Head / SBU Leader | VP / regional leadership | 15–22 years | Rare IC path at this band | VP, Delivery Head, SBU Leader, Portfolio Head |
| RG2 | SVP / Geography Head / Strategic Vertical Head | SVP / business-unit leadership | 18–25 years | No normal IC track publicly evident | SVP, Geography Head, Strategic Vertical Head |
| E2 | EVP / Business President / Senior Management | Executive leadership | 20–28 years | Not applicable | EVP, Business President, Senior Management |
| E3 | CXO / Global Function Head | Top enterprise leadership | 22+ years | Not applicable | Global Function Head, Chief Officer, Executive Committee member |
Compensation by Band
Location-adjusted estimates for Bangalore (INR)
| Band | Base Range | Variable Pay | Total Comp | ESOP? |
|---|---|---|---|---|
| U1 | ₹3.3L – ₹4.3L | 0–5% | ₹3.3L – ₹4.5L | No |
| U2 | ₹3.6L – ₹6.0L | 5–8% | ₹3.8L – ₹6.5L | No |
| U3 | ₹6.5L – ₹11.5L | 8–10% | ₹7.0L – ₹13.2L | No |
| U4 | ₹10.5L – ₹16.5L | 10% | ₹11.6L – ₹20.2L | Yes |
| P1 | ₹15.0L – ₹25.0L | 15–20% | ₹18.0L – ₹32.0L | Yes |
| P2 | ₹22.0L – ₹35.0L | 15–20% | ₹25.0L – ₹45.0L | Yes |
| E1 | ₹24.0L – ₹42.0L | 20–25% | ₹25.0L – ₹50.0L | Yes |
| RG1 | ₹28.0L – ₹55.0L | 20–30% | ₹30.0L – ₹70.0L | Yes |
| RG2 | ₹35.0L – ₹80.0L | 25–35% | ₹40.0L – ₹1.00Cr | Yes |
| E2 | ₹55.0L – ₹1.20Cr | 30–40% | ₹60.0L – ₹1.60Cr | Yes |
| E3 | ₹80.0L – ₹2.20Cr | 35–50% | ₹90.0L – ₹3.00Cr | Yes |
| CEO | ₹12.48Cr – ₹12.48Cr | Cash commission ~77.5% of base in FY25; equity can dominate statutory total compensation | ₹22.15Cr – ₹52.12Cr | Yes |
H1B Visa Data (US)
Public H1B petition data for Tech Mahindra Americas, showing top filing cities.
| City | Median | 25th Pctl | 75th Pctl | Petitions |
|---|---|---|---|---|
| Plano, TX | $93,559 | $81,396 | $107,593 | 1,417 |
| Redmond, WA | $101,837 | $88,598 | $117,113 | 549 |
| Franklin, TN | $80,164 | $69,743 | $92,189 | 539 |
| Alpharetta, GA | $86,404 | $75,171 | $99,365 | 509 |
Compensation Growth by Band
Total compensation ranges for Bangalore (INR)
Variable Pay Structure
| Band | Target Variable | Payout Mechanism | Confidence |
|---|---|---|---|
| U1–U3 | 0–10% | Mostly annual / cash-linked; exact formula not publicly disclosed | low |
| U4 | ~10% | Usually annual target; some delivery anecdotes mention billability-linked adjustments | low |
| P1–P2 | 15–20% | Annual target, sometimes with monthly/quarterly project-linked accrual in delivery contexts | low |
| E1 / RG1 | 20–30% | Annual cash variable; linked to BSC, business and individual performance | medium |
| RG2–E3 | 25–50% | Annual executive incentive | medium |
| CEO | Cash commission plus stock-heavy total comp | Annual commission determined by NRC; stock options separately disclosed | high |
Equity & Stock Plans
Tech Mahindra has three active equity plans. The dominant live plan is ESOP-2014, with ESOP-2018 still active and the new Performance Share Plan 2025 recently approved.
Active Plans
| Plan | Type | Status | Pool | Exercise Price | Outstanding |
|---|---|---|---|---|---|
| ESOP-2014 | ESOP | Active | 40,00,000 original pool; later augmented due to 1:1 bonus issue and share split (exact restated pool not separately printed in FY25 annexure). | NRC-determined; FY22/FY23/FY25 grants disclosed at ₹5. | 18,01,881 at FY25 year-end |
| ESOP-2018 | ESOP | Active | 50,00,000 | NRC-determined; FY22/FY23/FY25 grants disclosed at ₹5 when grants were made below market. | 9,11,012 at FY25 year-end |
| Performance Share Plan 2025 | Performance option / PSU-style plan | Approved, public grant data not yet visible | 75,00,000 options / shares | ₹5 face value per share | Not yet publicly disclosed |
Legacy Plans
Tech Mahindra has seven legacy plans, including schemes inherited from Satyam Computer Services. All are either exhausted, dissolved, or effectively inactive.
| Plan | Type | Status | Notes |
|---|---|---|---|
| ESOP-2000 | ESOP | Legacy / closed | Still appeared in FY22 annexure as historical scheme; not shown later as active. |
| ESOP-2006 | ESOP | Legacy / exhausted | FY23 option movement shows final 26,000 exercised, leaving zero outstanding. |
| ESOP-2010 | ESOP | Legacy / effectively inactive | Listed in FY22 annexure but not visible in later movement tables. |
| ESOP-B-2013 | ESOP | Legacy / exhausted | FY23 option movement closes out the scheme. |
| TML-RSU | RSU | Legacy / residual only then phased out | Residual 2,550 outstanding at FY23 year-end; not shown in FY25 annexure. |
| ESOP-A | ESOP | Dissolved | NRC approved dissolution on 30 Jan 2023. |
| TML-ESOS | ESOP | Dissolved | NRC approved dissolution on 30 Jan 2023. |
Insider Trades & ESOP Exercises
Recent Insider Trades
| Date | Person | Type | Shares | Notes |
|---|---|---|---|---|
| 2024-07-08 | Riya Varma | Revoke / pledge release | 2,195 | Trendlyne/insider snapshot; not a KMP trade. |
| 2025-04-24 | Multiple employees | Exercise / allotment | 2,235,189 | Shares allotted during FY25 on exercise of vested stock options across live schemes. |
| 2025-07-16 | Multiple employees | Exercise / allotment | 214,173 | Q1 FY26 cumulative allotment. |
| 2025-10-14 | Multiple employees | Exercise / allotment | 568,591 | FY26 first-half cumulative allotment. |
| 2026-01-16 | Multiple employees | Exercise / allotment | 727,621 | FY26 nine-month cumulative allotment. |
SAST Transactions
| Date | Entity | Transaction | Shares | Post-Holding |
|---|---|---|---|---|
| 2025-09-16 | Life Insurance Corporation of India | Acquisition | 19,628,171 | 10.84% |
| 2024-09-24 | Mitsubishi UFJ Financial Group & PACs | Disposal | 20,035,872 | 2.96% |
Executive Compensation
CEO: Mohit Joshi
CFO (Rohit Anand) total compensation: ₹6.20 Cr. Total board compensation: ₹8.63 Cr.
Peer CEO Compensation
| Company | CEO | Total Pay (INR) | Note |
|---|---|---|---|
| Tech Mahindra | Mohit Joshi | ₹52.12 Cr | FY25 statutory total, including stock option value. |
| TCS | K. Krithivasan | ₹26.52 Cr | FY25 remuneration. |
| Infosys | Salil Parekh | ₹80.62 Cr | FY25 remuneration. |
| HCLTech | C. Vijayakumar | ₹100.99 Cr | FY25 compensation converted from USD 10.85m at report-date FX. |
| Wipro | Srinivas Pallia | ₹57.71 Cr | FY25 compensation converted from USD 6.2m at report-date FX. |
| LTIMindtree | Debashis Chatterjee | ₹32.50 Cr | FY25 remuneration before retirement in May 2025. |
Board Compensation
| Director | Amount (INR) |
|---|---|
| Anand Gopal Mahindra | ₹1.37 Cr |
| Anish D. Shah | ₹72.65 L |
| Haigreve Khaitan | ₹88.32 L |
| Mukti Vishvanath | ₹1.03 Cr |
| Neelam Dhawan | ₹62.74 L |
| Penelope Fowler | ₹96.87 L |
| Puneet Renjen | ₹41.80 L |
| Shikha Sharma | ₹78.36 L |
| Tarun Bajaj | ₹74.12 L |
| Amarjyoti Barua | ₹29.94 L |
| T. Narayan | ₹35.69 L |
| Meka Rajyalakshmi | ₹29.97 L |
| Manoj Bhat | ₹13.08 L |
Benefits & Perks
India
- Paid leave for primary caregiver up to 26 weeks (official FY25 ESG disclosure).
- Adoption leave up to 26 weeks (official FY25 ESG disclosure).
- Paternity leave up to 5 days (official FY25 ESG disclosure).
- Sabbatical, family-care, bereavement and surrogacy-related leave options are publicly mentioned.
- Daycare / childcare facilities and lactation rooms are publicly mentioned for India offices.
- Work-from-home and hybrid arrangements are explicitly referenced.
- EPF, gratuity and health cover are likely present, but detailed public plan documents, provider names and coverage slabs are not publicly disclosed.
- Community-sourced references suggest flexible superannuation options and certification reimbursement, but these are not consistently disclosed in official investor documents.
United States
- Official 2026 job postings mention medical, vision, dental, life and disability insurance.
- Official 2026 job postings mention paid time off, holidays, parental leave and sick leave.
- Public employee Q&A also references 401(k), but the match percentage is not clearly disclosed publicly.
- Specific carrier names, deductible tiers and employer contribution percentages are not reliably public.
Global
- Flexible / hybrid work is explicitly mentioned in official ESG disclosures.
- Long-term incentives (ESOPs / RSUs) are linked to scorecards and sustainability outcomes.
- 15% discount on selected EMERITUS / executive-learning programs is publicly promoted on the company intranet-facing page.
- Public community references suggest reimbursement of approved certifications, but the exact reimbursement matrix is not public.
- Detailed private-health / pension supplements outside India and the US are only partially visible in public employee-review sites.
Performance Review & Pay Progression
Official Performance Facts
- Performance appraisal is described using Management by Objectives, Multi-dimensional Feedback and Formal Comparative Ranking.
- The public ESG report says the performance system uses a 3-level rating scale.
- 180-degree feedback is used for all associates; 360-degree feedback is used for senior management.
- Tech Mahindra mentions mid-term and annual review checkpoints via the IDEAS platform.
- Exact rating labels, forced-distribution percentages and band-wise increment grids are not publicly disclosed.
Promotion Timeline (Modeled)
| Transition | Years | Note |
|---|---|---|
| U1 → U2 | 1.0–1.5 | Modeled from fresher-to-billable progression. |
| U2 → U3 | 1.5–2.5 | Modeled from common service-company progression. |
| U3 → U4 | 2–3 | Senior engineer / lead transition. |
| U4 → P1 | 2–3 | First real lead / PM threshold. |
| P1 → P2 | 2.5–4 | Manager / architect transition. |
| P2 → E1 | 3–5 | Director / AVP threshold. |
| E1 → RG1 | 3–5 | VP / portfolio leadership progression. |
| RG1 → RG2 | 3–5 | Geography / vertical leadership. |
| RG2 → E2/E3 | 4–6 | Enterprise leadership progression. |
Hike Cycle
The best current public evidence says the FY25 company-wide salary revision started from January 2025, with compensation letters reportedly sent on 27 December 2024 and average hikes around 7%, reaching ~12% for top performers.
Promotion Hikes
Not publicly disclosed. Market synthesis suggests ~10–20% for within-track promotions and ~15–30% for band-jump / retention corrections, but this is not company-authenticated.
Key Nuances & Insights
The public level architecture is real but incomplete
Tech Mahindra's own careers pages leak U2/U3, U4, P1, P2 / E1 / RG1. Older official governance disclosures also show U1–P1, P2–E1, E2+ and references to RG2/E3. But the company does not publish a neat, employee-facing level handbook in public, so any full ladder is partly reconstruction.
Compensation transparency is asymmetric
Executive pay, ESOP mechanics, headcount and attrition are relatively well disclosed. Band-by-band cash pay is not. That forces a synthesis from job postings, H1B records and salary aggregators.
Equity is not universally broad-based
The ESG report says 17.62% of the workforce below senior-management level is applicable for the long-term incentive program. That implies broad-based access is selective rather than automatic.
The CEO pay ratio can be badly misread
Tech Mahindra's MGT-7 shows a statutory FY25 CEO total of ₹52.12 crore because stock-option accounting dominates. The ESG ratio disclosure, however, uses only salary plus commission at ₹22.15 crore. Analysts who mix those two lenses will produce nonsense comparisons.
The company still carries legacy plan DNA from Satyam and MES
The FY22 ESOP disclosure explicitly notes that Satyam Computer Services plans were taken over and adjusted using the merger swap ratio. Legacy schemes continued to echo for years until plan closures and dissolutions in FY23.
The location gap is structural, not incidental
Tech Mahindra's onshore/offshore mix remained around 22% / 78% in Q3 FY26. That supports a compensation model where India delivery centers remain the cost base and client-facing onshore roles clear far higher salary bands.
Official job postings are now an important pay signal
North American and Canadian postings frequently publish annual pay ranges including bonuses / variable pay. Those postings are often more useful than salary sites for current onshore calibration.
Promoter ownership drift looks more like dilution than active trading
Public shareholding snapshots show only a minor promoter-percentage slide in 2024–25. Against simultaneous ESOP allotments, dilution is a cleaner explanation than major promoter stock sales.
Recent Compensation News
2025 campus hires faced onboarding delays
Multiple reports said more than 1,000 engineering graduates from the 2025 batch were still waiting for joining after receiving offers.
Q3 FY26 headcount recovered to 149,616; attrition 12.3% LTM
Onsite mix stayed near 22.1%, underscoring Tech Mahindra's continued offshore-heavy labor model.
Shareholders approved Performance Share Plan 2025
The new 75 lakh-share plan adds a more explicitly performance-weighted long-term incentive structure.
FY25 closed with 148,731 employees and 11.8% attrition
Tech Mahindra also recorded 22,35,189 option exercises during FY25 across ESOP-2014 and ESOP-2018.
Salary hikes rolled out from January 2025
Average hikes were reported at about 7%, with top performers reaching around 12%.
Mohit Joshi received 2,17,642 ESOP-2014 options
This was the largest single FY25 disclosed grant in the company's annual ESOP annexure.