New Infosys CEO Salil Parekh will get a fixed salary of Rs 6.5 crores. Parekh would also get a variable pay of Rs 9.75 crores at the end of the 2018-2019 fiscal year, PTI reported citing a top company executive.
"Infosys CEO Salil Parekh will be paid a fixed salary of Rs 6.5 crores. He would be eligible for variable pay of Rs 9.75 crores at the end of the fiscal year," independent board member at Infosys Kiran Mazumdar Shaw told PTI.
Former CEO Vishal Sikka earned USD 6.75 million in FY17 much to disliking of Infosys founder NR Narayana Murthy.
Wipro CEO Abidali Neemuchwala is getting a bit over USD 2 million.
The annual salary of Salil Parekh will be Rs 162. 5 million ($ 2.55 million) but according to a report in Business Standard, the amount is just a quarter of what Infosys had signed up with his high profile predecessor Vishal Sikka. Sikka had resigned from the firm after three years in turmoil.
According to a report, Sikka had signed up $ 11 million package including stock options. However, in fiscal 2017, the last of the three-year term, Sikka earned Rs 451 million ($ 7 million), after he struggled to grow business faster in a volatile business environment.
Meanwhile, Kiran Mazumdar Shaw, who is part of the Nomination and Remuneration Committee (NRC), said Parekh will also receive Rs 3.25 crores in restricted stock units.
"He will also get Rs 13 crores in annual performance equity grants," she said.
Parekh will also get a one-time equity grant of Rs 9.75 crores, Shaw said.
The stock compensation will vest at different points over Parekh's term. He has been appointed for a 5-year term, Parekh's employment contract also comes with a non- compete clause, Shaw added.
Parekh's contract also specifies the amount he will be paid should he fail to meet minimum performance targets, company said in a postal ballot, Shaw said.
Infosys appointed Capgemini's former executive Salil Parekh as CEO and managing director effective from Jan 2, 2018 putting and end to its two-month search for the same.
Parekh will replace UB Pravin Rao, who was interim CEO and managing director since August.
Parekh was a member of the Group Executive Board at French IT services company Capgemini and has Master of Engineering degrees in Computer Science and Mechanical Engineering from Cornell.
He is also an IIT product, and has a B.Tech in Aeronautical Engineering from IIT, Bombay.
Chairman of Infosys’ board Nandan Nilekani said in a filing at the Bombay Stock Exchange: “We are delighted to have Salil joining as the CEO & MD of Infosys. He has nearly three decades of global experience in the IT services industry. He has a strong track record of executing business turnarounds and managing very successful acquisitions. The Board believes that he is the right person to lead Infosys at this transformative time in our industry.”
