IT services major Infosys has proposed to increase the compensation package of its CEO Salil Parekh to Rs 79.75 crore per annum, a jump of nearly 88% from his current package of Rs 42.5 crore, according to the company’s annual report for fiscal 2022 released on Thursday, May 26. Parekh has also been reappointed as the Chief Executive Officer and Managing Director of the company for 5 years till March 31, 2027. The new employment agreement, subject to shareholder approval, will come into effect on July 2.
For FY22, Parekh received a total compensation of Rs 71 crore, which included Rs 52 crore from restricted stock units. Under the new remuneration plan, Parekh’s performance-based compensation will go up to 86% from the earlier 77%, while fixed compensation will be less than 15%. This comprises a fixed pay, which would make up 10% from the earlier 15%, and time-based stocks will be 4% from the earlier 8%.
Recommending a revised compensation structure, the company stated that Parekh has demonstrated “successful business growth and overall performance” since his appointment. During his tenure, the company saw an increase in the total number of employees from 2,04,107 to 3,14,015. “The Company competes with global peers, particularly in North America and Europe, with almost 87% of the Company’s revenue coming from these geographies, and therefore, Salil’s remuneration has to be determined keeping in view international benchmarks,” Infosys noted.
The company said Parekh’s proposed total target remuneration, in relation to that paid to his peers, would be around the median. For this analysis, the company said that its peers are Accenture, Cognizant Technology Solutions Corporation, DXC Technology Company, Tata Consultancy Services Limited, Wipro Limited, Tech Mahindra, Capgemini, HCL Technologies Limited, International Business Machines Corporation and Atos SE.
Salil Parekh has more than 30 years of global experience in the IT services industry with a strong track record of driving digital transformation for enterprises, executing business turnarounds, and managing successful acquisitions, the company stated.
Prior to Infosys, Parekh was a member of the Group Executive Board at Capgemini, where he held several leadership positions for 25 years. He was also a Partner at Ernst & Young. The 57-year-old CEO holds Master of Engineering degrees in Computer Science and Mechanical Engineering from Cornell University, and a Bachelor of Technology degree in Aeronautical Engineering from the Indian Institute of Technology, Bombay.