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No. 2: VIRTUSA
Kris Canekeratne, CEO
Obermatt/CRN Pay-For-Performance Index:Underpaid by 84 percent
Under CEO Kris Canekeratne, Virtusa has made offshore service delivery an art form. In today's trying economic times, many companies are looking for ways to run their businesses more efficiently. Solution providers such as global IT services company Virtusa use an offshore delivery model to provide those customers a broad range of services, including IT consulting, technology implementation and application outsourcing.
Even with an increase in total compensation to $1.5 million in 2011, Canekeratne is underpaid, according to the Obermatt/CRN Pay-For-Performance Index. While his compensation last year is nearly a 400 percent leap from the $301,000 he earned in 2009, the index shows that Canekeratne is underpaid by 84 percent during the period from 2009 to 2011. Virtusa executives did not return emails or phone calls seeking comment.
One reason for Canekeratne's strong pay-for-performance track record is that New York-based Virtusa's sales grew nearly 70 percent between 2009 and 2011, from $164.4 million to $277.8 million. The company relies on repeat customers: During its quarter ended March 31, 2012, 90 percent of revenue was derived from clients who had been using Virtusa's services for more than one year.
Earnings have risen impressively as well. In 2009, Virtusa posted $12.1 million in earnings, which soared to $20 million two years later, a 65 percent increase. The company's share price, meanwhile, more than doubled from $6.20 to $14.48 from the end of its 2009 and 2011 fiscal years, two years that were not always kind to the tech sector.
Canekeratne is one of the firm's co-founders and has served as chairman of the board of directors since the company's launch in 1996. He has been CEO twice: once from 1996 to 1997 and again from 2000 to now.
The CEO led the $27.8 million acquisition of ALaS Consulting last July, which has enabled Virtusa to expand its management consulting services to banking, financial services and capital markets customers. Further, under Canekeratne's direction, Virtusa's bottom line has benefited from the increased revenue growth of its customers, particularly those in the banking, financial services and insurance and communications and technology industries.