When Vishal Sikka was reappointed as managing director and chief executive officer of Infosys Ltd. in 2016 for five years, India's second largest software services provider increased his compensation, most of it in equity-linked incentives. That was one of the grouses of co-Founder NR Narayana Murthy.
Sikka was eligible for $2 million in fair value worth of restricted stock units annually, according to the filings to exchanges. As on March 31 this year, Sikka had 3.08 lakh such options worth close to Rs 30 crore.
After he resigned midway his term, Sikka was re-designated as an executive vice-chairman by the Infosys board. And he continues to retain the stock options.
“Any company equity awards held by Sikka that remain outstanding and unvested shall, during his term as executive vice chairman, remain outstanding and shall continue to vest (and, in the case of stock options, become exercisable) in accordance with their terms,” the company’s filing to exchanges said on Friday.
According to his contract, Sikka is also eligible for $5 million in performance-based equity and stock options which were to be granted on meeting targets determined by the board or its committee over the course of his term ending in 2021.
There is still no clarity on this performance-based part of his compensation. The company didn’t immediately respond to BloombergQuint’s emailed queries.
Sikka will, however, not get any severance pay as he resigned on his own, the company’s management said in a conference call with analysts. And he will get $1 a year as executive vice-chairman.
Sikka suggested $1 annual compensation, board chairman R Seshasayee said in a press conference. “He is not motivated by phenomenal sums of money; he’s motivated by what technology can do to amplify lives.”