Infosys chief financial officer (CFO) M D Ranganath will be relocating to US to assist the company’s America expansion plans, and as part of this transition, the Board has also decided to increase his compensation substantially. Ranganath’s new compensation effective July, 2017, will amount to $1.25 million which includes a fixed salary of $0.69 million and a variable component of $0.56 million. His compensation for FY17, including fixed and variable components, was $0.69 million, according to regulatory filings. According to a statement by Infosys, the CFO will also be eligible for stock incentives and this will be decided by the nomination and remuneration committee from time to time based on company’s performance. Infosys in June had announced that its executive heading the America operations, Sandeep Dadlani, had resigned. On the relocation of the CFO, Infosys CEO Vishal Sikka said, “Ranga and I work very closely. In my early days here, for about 5-6 quarters, Ranga was in the US and we used to work together and we want to get some of that back.”
Sikka said that the company was aggressively expanding its workforce and setting up new centres in the US, a market that accounted for over 61% of its revenue. Infosys has already given a commitment of hiring 10,000 US citizens and opening four new developments centres. It has already inaugurated two centres in Indiana and North Carolina, which will employ 2,000 people each, over a period of time. “There is significant transformation happening (in the US) and the nature of this transformation is quite different, so I need Ranga in the US and that is why he is moving back,” Sikka said.
The Infosys CEO said its decision to hire 10,000 US citizens had nothing to do with the restrictions imposed on H-1B visas. “If you look at the American companies, we are in the throes of massive digital transformation. The kinds of services, the capabilities that businesses need, are all about being close to the customer,” he said.
On the company’s capital allocation plans, where it has promised distribution of Rs13,000 crore or $2 billion to the shareholders, Ranganath said it is still in the process of getting multiple regulatory approvals, adding that that it is committed to rolling it out as quickly as possible.