Infosys CEO Salil Parekh will be paid a fixed salary of Rs 6.5 crores and would be eligible for variable pay of Rs 9.75 crores at the end of the 2018-2019 fiscal year, according to a top company executive. Interestingly, it is just a fourth of what Parekh’s high-profile predecessor Vishal Sikka earned at the IT major. Vishal Sikka earned $6.75 million in FY17 much to the disliking of Infosys founder NR Narayana Murthy. Wipro CEO Abidali Neemuchwala is getting a bit over USD 2 million. Vishal Sikka resigned in August last year.
“Infosys CEO Salil Parekh will be paid a fixed salary of Rs 6.5 crores. He would be eligible for variable pay of Rs 9.75 crores at the end of the fiscal year,” independent board member at Infosys Kiran Mazumdar Shaw told PTI here. Shaw, who is part of the Nomination and Remuneration Committee (NRC), said Parekh will also receive Rs 3.25 crores in restricted stock units. “He will also get Rs 13 crores in annual performance equity grants,” she said. Parekh will also get a one-time equity grant of Rs 9.75 crores, Shaw said.
The stock compensation will vest at different points over Parekh’s term. He has been appointed for a 5-year term, Parekh’s employment contract also comes with a non-compete clause, Shaw said.Parekh’s contract also specifies the amount he will be paid should he fail to meet minimum performance targets, company said in a postal ballot, Shaw said. Salil Satish Parekh was appointed as new CEO and MD of Infosys for a period of five years effective from January 2, 2018 on Saturday afternoon. Salil Parekh replaced company’s interim CEO U B Pravin Rao who took charge after the resignation of Vishal Sikka, earlier this year.Salil Parekh, who was also serving as the Member of Group Management Board at Capgemini, left behind nearly 29 candidates to reach Infosys’ helm, a position which was vacant nearly for four months, as he had ” a holistic set of attributes which swung in his favour.” Salil Parekh’s appointment was made on the recommendation of the Nomination and Remuneration Committee which concluded its global search for a CEO & MD of Infosys.