In a filing to the US Securities and Exchange Commission (SEC), Infosys said that it paid $104,661 in total compensation to Gopalakrishnan for FY13 which shows a 29% decline when compared with $147,401 paid to him during FY12. Similarly, Shibulal received an annual compensation of $104,659 for FY13, against $145,876 in FY12, showing a steep fall of nearly 28%.
The annual package includes the salary, bonus and incentives and other annual compensation. This does not include the amount accrued for long-term benefits. This sharp fall in compensation for FY13 was largely on account of severe cut in the bonus and incentive component.
A similar trend is also witnessed among the other key executives of Infosys, whose compensation decline was almost in the same line as the CEO and co-chairman. V Balakrishnan, former CFO of Infosys who now looks after other businesses of the company, saw a 37% fall in the total compensation. For the fiscal 2012-13, Balakrishnan was totally paid $351,043, against $561,232 in FY12.
Even other top executives and board members like Ashok Vemuri and BG Srinivas saw a 23% and 27% decline in their annual compensation, respectively.
Chandrasekar Kakal, head of Infosys enterprise solution unit, also saw a massive fall of 40% in total compensation for FY13 touching $268,933, against $444,768 in FY12.
Though, there were others who managed to get an increase in total compensation with Stephen Pratt, head of Infosys consulting business, becoming the highest-paid executive. For FY13, Pratt received a total package of $2,129,785, showing a rise of 7% compared with $1,986,653 in FY12.
Basab Pradhan, global sales head of the company, saw a 9% jump in total compensation to touch $505960 in FY13.
The overall fall in total compensation for the top executives at Infosys is also a reflection of the overall trend within the Indian IT industry which, of late, is witnessing a single digit hike in annual salaries.
During the fourth-quarter results, the Bangalore-based firm did not give any clear indication on wage hike for fiscal 2013-14. On increments, the firm pointed out that it will communicate directly with the employees. Usually, Infosys effects appraisals in the very beginning of the fiscal effective April.
However, in FY13, Infosys took a drastic step to withhold wage hikes till it gained more clarity on its business.
Later in October 2012, the software-services company doled out an average 6% hike for employees in India and 2-3% outside the country. However, for its onsite workforce, salary increment was implemented from January 1, 2013.
According to a recent Compensation Trends survey by consulting firm Deloitte in India, across all levels, variable pay percent median for top management in the IT sector, is down to 18.7% from last years 25%, while senior management is down to 17.5% from 20%. However, at the top management level the increments projected have gone up to 11.6% this year from 9% last year.