US-based IT firm iGATE will pay its new CEO and President Ashok Vemuri a base salary of USD 1.3 million (about Rs 8.2 crore) along with an annual cash bonus of as much as USD one million (Rs 6.3 crore).
Ashok Vemuri's salary package at iGATE works out to more than double the amount he received at Infosys Ltd where he was Head of Americas and Global Head of Manufacturing and Engineering.
In 2012-13, Ashok Vemuri drew a basic salary of Rs 3.89 crore (USD 708,000) along with a bonus of Rs 1.02 crore (USD 190,978) at Infosys, taking the total to Rs 4.91 crore.
"Mr Ashok Vemuri will be employed initially for a five-year term commencing on September 16, 2013, with an initial annual base salary of USD 1.3 million and an annual cash bonus ranging between 0 per cent to 200 per cent of the target bonus of USD 500,000," iGATE said in a filing to the US Securities and Exchange Commission.
Ashok Vemuri, who was one of the highest paid executives at Infosys Ltd, which he left to join iGATE, will also qualify for 150,000 options in iGate and 100,000 restricted stock with a four-year schedule with 25 per cent vesting at the end of each year.
Ashok Vemuri will also receive 3,00,000 target amount of performance-based restricted shares linked to iGATE achieving an EBITDA (earnings before interest, taxes, depreciation and amortisation) goal of USD 400 million.
Vemuri, a St Stephens, Delhi, and IIM-Ahmedabad alumnus, was responsible for Infosys' business operations in the company's largest region with USD 4.7 billion in sales.
iGATE appointed Ashok Vemuri as its CEO and President last week, replacing Phaneesh Murthy, who was sacked in May for failing to disclose his relationship with a subordinate as per company norms.
For 2012, Murthy's performance-based incentives were raised to USD 600,000 from USD 500,000 in 2011, while his base salary was USD 1 million.
In a separate statement, the Nasdaq-listed iGATE said it has bagged a multi-year deal to set up and establish a Testing Center of Excellence (TCoE) and provide quality assurance (QA) testing services for the IT applications portfolio of Associated Banc-Corp.
Associated Banc-Corp is a publicly-traded US bank holding company.
Under the agreement, the centre will perform