Huge pay packet puts Infosys boss in top league in India

Infosys CEO Vishal Sikka is among the highest paid corporate executives in the country.

Published: 16th February 2017 01:58 AM  |   Last Updated: 16th February 2017 03:43 AM   |  A+A-

By Express News Service

BENGALURU: Infosys CEO Vishal Sikka is among the highest paid corporate executives in the country. In some companies, promoters themselves are running the show and drawing higher salaries, but when it comes to non-promoter CEOs, Sikka is in the top league.
Vishal Sikka’s salary, at $11mn per annum (roughly around Rs 73 crore), has been a matter of debate ever since Infosys co-founder N R Narayana Murthy recently took objection to the huge raise given to the company’s CEO. Even though the Infosys board has justified Sikka’s remuneration, Murthy has demanded an explanation from the company on this decision.

Vishal Sikka

According to official data available in the company declarations and the data compiled by VC Circle (for 2015-16), Sikka figures among the top ten highly paid corporate executives in the country.
Among the IT companies, Tech Mahindra CEO C P Gurnani gets Rs 45.27 crore per annum, TCS CEO N Chandrasekaran’s package is Rs 25.6 crore and Wipro CEO Abidali Neemuchwala’s pay is around Rs 11.97 crore.
Global CEOs way ahead

The Indian business leaders’ pay packages pale in comparison with some of the global corporate giants. Taking some of the global pays into consideration, Sikka is far behind compared to some CEOs abroad including Sundar Pichai of Google ($100.5 mn per annum), Satya Nadella of Microsoft ($18.3 mn per annum) or Shantanu Narayen of Adobe ($18.4 mn).

Speaking to Express, Infosys former CFO V Balakrishnan said, when it comes to CEOs, rather than their pay packages and their hikes, what matters is whether the company has an explicable rationale behind it. He said even though there were no stipulations for the ratio of salaries of CEOs to the next level executives in the company, an organisation needs to be in a position to explain the rationale behind salaries and hikes.

“The CEO component is a big thing in any country. Which is why it is important to have an explicable value system. There is no fixed ratio on how much the CEO should earn in comparison with the other top executives, but the divide should not be huge. The board and the remuneration committee should be able to explain the rationale behind these decisions. There are two things that matter here: are these decisions adding value to the company and how the shareholders are going to benefit from it,” he felt.



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