BENGALURU: IT major Infosys CEO and MD Salil Parekh would get an 88% hike in salary in 2022-23 after the company recommended a revised compensation structure. Under the revised structure, Parekh’s salary would increase from Rs 42.50 crore to Rs 79.75 crore. Nearly 97% of the increase in Parekh’s proposed remuneration is linked to performance.
In FY 22, Parekh received Rs 71.02 crore in remuneration, which include Rs 52.33 crore pertaining to exercise of restricted stock units (RSUs). The FY22 remuneration is 43% more than Rs 49.68 crore he took home in FY21. His remuneration is the highest when compared to the country’s largest IT firm TCS’ CEO Rajesh Gopinathan’s Rs 26 crore compensation in FY22.
Parekh was first appointed as the CEO and MD of the company on January 2, 2018. Recently, the second-largest IT services company announced the reappointment of Parekh, 57, from July 2022 to March 2027. In the annual report, Infosys said Parekh demonstrated successful business and overall performance since his appointment.
“The company competes with global peers, particularly in North America and Europe, with almost 87% of the revenue coming from these geographies, and therefore, Salil’s remuneration has to be determined keeping in view global benchmarks. Salil’s proposed total target remuneration vis-a-vis the remuneration most recently paid to CEOs of peers would be around the median,” the report said.
Under his leadership, Infosys’ total shareholder return (TSR) was 314%. Its market capitalisation increased during his tenure by nearly Rs 5,77,000 crore. During the preceding four-year period, prior to the appointment of Parekh, Infosys’ TSR was 30% as compared to the peers’ median TSR of 47%. The company also saw an increase in the number of $100 million clients from 20 in fiscal 2018 to 38 in fiscal 2022.
During his tenure, the total number of employees increased from 2,04,107 to 3,14, 015. Infosys COO UB Pravin Rao, who retired in December 2021, took home Rs 37.25 crore in FY22. The company’s chairman Nandan M Nilekani, who has 0.97% shareholding in the company, voluntarily chose not to receive any remuneration for his services.