Infosys CEO Salil Parekh To Get Up To Rs 18.6 Crore In Salary And Variable Pay
Salil Parekh, the newly appointed chief executive of Infosys Ltd., will draw an annual salary of up to Rs 18.6 crore, including the variable component.
For the first three months of 2018, Parekh will be paid an “initial variable pay” of Rs 2.37 crore, apart from fixed salary and other benefits, as per Infosys' postal ballot. Infosys has sought shareholder approval for Parekh's appointment, who assumed office on January 2 for a period of five years.
The ballot, which will be put to vote between Jan. 22 and Feb. 20, also seeks nod for the re-designation of UB Pravin Rao as chief operating officer and whole-time director. The results will be announced on or before Feb. 24.
As per the proposal, Parekh will get an annual fixed pay of Rs 6.5 crore. He will be eligible for maximum 125 percent of the annual variable pay of Rs 9.75 crore (which comes to up to Rs 12.18 crore), subject to achievement of certain milestones.
In addition, the ex-Capgemini executive will also receive Rs 3.25 crore in restricted stock units, Rs 13 crore in annual performance equity grants and a one-time equity grant of Rs 9.75 crore. The stock compensation will vest at various intervals during Parekh's term.
Vishal Sikka – the former chief who had stepped down in August last year after a protracted row with Infosys co-founders – had drawn a total compensation of Rs 45.11 crore in 2016-17. High salary hikes for the leadership team and huge severance packages being doled out to former employees were among key issued raised by the Infosys founders last year.
After the resignation of Sikka and Board members including chairman R Seshasayee, Infosys brought in co-founder Nandan Nilekani to steer the company. In December, it named Parekh as its new CEO and MD.
Parekh's contract also outlines the amount he will be paid in case the minimum performance targets are not met. "Should Mr Parekh fail to achieve minimum performance targets, his remuneration as proposed will fall to, Rs 6.5 crore annually of fixed salary and Rs 3.25 crore of annual equity grant," the postal ballot said.
Parekh's employment contract also stated that he will not be allowed to work with named competitors for six months from the day he leaves the company.
How That Compares To Peers?
- Wipro CEO Abidali Neemuchwala's pay package stood at $2.09 million, or around Rs 13.2 crore during fiscal 2017.
- Tata Consultancy Services CEO Rajesh Gopinathan took home Rs 6.22 crore during the same year.
Also Read: New Infosys CEO Salil Parekh Takes Charge