Don’t miss the latest developments in business and finance.

Infy CEO to get upto Rs 18.6 cr in salary, variable pay

Image
Press Trust of India Bengaluru
Last Updated : Jan 04 2018 | 4:55 PM IST
Salil Parekh, the newly appointed CEO of Infosys, will draw an annual salary of up to Rs 18.6 crore, including variable component, from April onwards.
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 January 22 -Febraury 20 -- also seeks nod for re-designation of UB Pravin Rao as Chief Operating Officer and whole-time director. The results will be announced on or before February 24.
As per the proposal, Parekh will get an annual salary of Rs 6.5 crore (fixed pay), and will be eligible for maximum 125 per cent 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.

More From This Section

Vishal Sikka -- who had quit from the CEO position in August last year after a protracted row with Infosys founders -- had drawn a total compensation, including bonus and grant of stocks, of Rs 45.11 crore in 2016-17.
Wipro CEO Abidali Neemuchwala's pay package stood at USD 2.09 million (Rs 13.2 crore) during FY2016-17, while TCS CEO Rajesh Gopinathan took home Rs 6.22 crore during the said fiscal.
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 like R Seshasayee (Chairman) in August, Infosys brought in co-founder Nandan Nilekani to steer the company. In December, it named ex-Capgemini executive 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.
He will also not work with or for a client to whom he has rendered service for the last 12 months, Infosys said.

Also Read

First Published: Jan 04 2018 | 4:55 PM IST

Next Story