INFY TO PAY PAREKH ₹17.3CR IN FIRST YEAR
BENGALURU: Infosys Ltd’s new chief executive officer (CEO) Salil Parekh has been given a ₹9.75 crore joining bonus and could earn up to ₹17.3 crore in 2018-19.
His earnings could possibly double to ₹35.25 crore in the year ended March 2021, provided the former Capgemini executive steers the company well.
Parekh, who took charge on January 2 for a period of five years, could earn up to ₹16.25 crore in cash every year, which includes a fixed salary of ₹6.5 crore and variable pay of up to ₹9.75 crore, according to stock exchange filings made by the firm on Wednesday.
There are two additional components as well—an annual grant of ₹3.25 crore in stock, a third of which will vest every year over the next three years, and an annual performance equity grant of ₹13 crore which will be paid depending upon Infosys’s performance.
This means that if Parekh’s leadership matches up to the Infosys board’s expectations, he can earn up to ₹17.3 crore in the first year ended March 2019, ₹19.25 crore in the year ended March 2020 and up to ₹35.25 crore in the year ended March 2021.
This is because Parekh will be eligible for his annual performance equity grant of ₹13 crore a year only after completing three years (at the end of March 2021), making many believe Infosys wants its CEO to stay and deliver consistently for a few years.
Parekh will also be paid a onetime ₹9.75 crore in stock, which people believe is similar to a joining bonus made to executives by companies.
“A One-time equity Grant of RSUs covering shares have a Value equal to Rupees Nine Seventy Five Lakhs (₹9,75,00,000). The One-time equity Grant shall vest in two (2) instalments as follows—(x) fifty percent (50%) of the Shares subject to the Onetime Equity Grant shall vest of the first anniversary of the Grant Date; and (y) the remaining fifty percent (50%) of the Shares subject to the One-time equity Grant shall vest on the second anniversary of the Grant Date,” Infosys said in its filing with BSE.
Still, Parekh has received an annual pay package that is much lower than what was paid out to his predecessor Vishal Sikka, and lower than his peers at rival firms Cognizant Technology Solutions Corp. and Tata Consultancy Services Ltd too,, although higher than his counterpart at Wipro Ltd.