Infosys CEO Vishal Sikka's pay cut by 40% as company performs moderately in 2016-17

The company grew only 7.4% in dollar terms, whereas the forecast was 11.5 % to 13.5%.
Infosys CEO Vishal Sikka's pay cut by 40% as company performs moderately in 2016-17
Infosys CEO Vishal Sikka's pay cut by 40% as company performs moderately in 2016-17
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IT major Infosys CEO Vishal Sikka received a pay cut as the company failed to meet its set targets.

The Times of India reported that Sikka got only 46% of his target related compensation for the last financial year.

According to the TOI report, Sikka took home only $3.68 million of the possible $8 million of his variable income, which meant that in total, for the last fiscal, his annual income was $6.68 million out of the possible $11 million.

The drop in Sikka’s pay package comes ten days after company founder Narayana Murthy made waves with his statement on astronomical pay hikes rewarded to company’s top bosses while most employees get a meagre 6-8% increase in their salaries.

According to an Economic Times report, this move got the assent of shareholder advisors.

"If you see (we) have not given him all the ESOPs he was eligible for. This is a good sign, to focus (on) pay with performance," Shriram Subramanian, managing director of shareholder advisory firm InGovern, told ET.

The company grew 7.4% in dollar terms in the year when the growth was forecasted to be 11.5 % to 13.5%, Business Standard reported.

This moderate growth led to most of its senior executive employees getting close to half of their variable portion of their pay, the BS report added.

The top executive’s pay package went up by from its total of $7.08 million which included $2 million in stock option.

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