The total compensation of Infosys chief executive officer (CEO) and managing director (MD) Salil Parekh increased 43 per cent to Rs 71.02 crore per annum in the last fiscal. More than half of the his salary had come from the exercise of his stock option, the latest annual report of the software major showed. Infosys CEO had received a total remuneration of Rs 49.68 crore in 2020-21 and Rs 34.27 crore in 2019-20.
Parekh’s compensation during 2021-22 included Rs 5.69 crore base salary, Rs 0.38 crore retiral benefits, Rs 12.62 crore bonus and incentives and Rs 52.33 crore in perquisites on account of stock options exercised, according to the annual report. Infosys CEO exercised 2,29,792 stock units under the 2015 stock option plan and 1,48,434 units under the 2019 plan during the last fiscal.
Rajesh Gopinathan, chief executive officer and managing director of India’s largest information technology or IT services firm Tata Consultancy Services, drew a pay package of Rs 25.76 crore in 2021-21.
Infosys non-executive chairman Nandan Nilekani voluntarily chose not to receive any remuneration for his services rendered to the company during 2021-22, the report said.
The compensation of chief operating officer U B Pravin Rao also jumped sharply in fiscal 2021-22. His salary increased 116 per cent to Rs 37.3 crore in FY22 against Rs 17.3 crore in FY21. Rao had received a base salary of Rs 2.95 crore, retiral benefits of 0.13 crore, bonus or incentives or variable pay of Rs 7.99 crore and Rs 26.19 crore in stock options.
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Extraordinary Performance of Infosys Under Salil Parekh
Parekh has recently been re-appointed as the CEO and MD of the company for a period of five years, effective from July 1, 2022, to March 31, 2027. The company recommended his re-appointment considering the strong performance of the company and increase in shareholder value under him.
The committee has also “recommended a revised compensation structure for Infosys CEO and MD going forward, considering that Parekh is not a first-time CEO and MD, as he was at the time of his initial appointment.” The total remuneration of Infosys CEO and MD will be increased to Rs 79.75 crore per annum. Of this, Rs 68.75 crore is performance-based remuneration.
Under Infosys CEO’s leadership, total shareholder return (TSR) was at 314 per cent, the highest among peers. The market capitalisation of Infosys increased during his tenure by Rs 5,77,000 crore, according to the annual report.”The revenue growth of the company under Salil’s leadership has accelerated and grown from Rs 70,522 crore (fiscal 2018) to Rs 1,21,641 crore (fiscal 2022), a CAGR of 15 per cent (prior four years CAGR 9 per cent) and the profits have also increased from Rs 16,029 crore to Rs 22,110 crore,” the report further added.
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“These results were delivered under the ‘Navigating your Next strategy, led by Salil Parekh, comprising scaling digital revenue, accelerating the core, localisation and reskilling, which has resulted in an increased market share in a highly competitive environment,” it mentioned.
On Parekh’s remarkable journey at Infosys and growth of the company, Nandan M. Nilekani, chairman, Infosys said, “Our CEO, Salil Parekh, a big champion of the One Infosys approach, brought together all the capabilities and intellectual capital of Infosys to create value and make a disproportionate impact for our clients. This required company-wide orchestration of our strengths, deep collaboration amongst our leaders and synergising of all our business units and service lines. Salil has delivered industry leading performance for the company, and it is in the interest of the company and its stakeholders to secure the continuity and stability of the current leadership.”
