Infosys CEO and Managing Director Salil Parekh‘s total compensation increased by 22 per cent, reaching ₹80.62 crore (approximately $9.44 million) in the fiscal year 2024–25. According to the annual report released by Infosys, this compensation excludes the perquisite value of stock incentives exercised during the year.
Second highest paid executives in IT sector
With this, Parekh is now the second highest-paid executive in India’s IT sector. His pay stood at 752 times the median remuneration of employees, excluding perquisite values. Cognizant’s CEO remains at the top of the list with a total compensation of ₹186 crore in FY24
Compared to his peers, Parekh’s compensation is notably higher. TCS CEO K Krithivasan earned $3.11 million, and Wipro CEO Srinivas Pallia earned $6.28 million in the same fiscal year.
Infosys Chairman Nandan M Nilekani voluntarily chose not to receive any remuneration for his services rendered to the company, according to the report.
Parekh’s pay in FY23 had dropped to ₹56 crore from ₹71 crore in FY22.
Despite Infosys reporting a 4.2 per cent revenue growth in constant currency terms for FY25 — slightly below its forecast — the company’s board emphasized the importance of competitive compensation to retain leadership in India’s $283-billion IT sector.
Who is Salil Parekh?
Salil Parekh, has been serving as the Chief Executive Officer and Managing Director of Infosys since his initial appointment on January 2, 2018. He has been an Executive Director on the board for over 7.2 years.
His appointment terms were approved by shareholders through a postal ballot in February 2018 and subsequently amended in June 2019. His reappointment, along with revised remuneration, was approved at the company’s 41st Annual General Meeting held on June 25, 2022. His current term extends until March 31, 2027. He holds 1,185,548 shares in the company, representing 0.03 per cent of its total shareholding.
Breakdown of Salil Parekh’s FY25 remuneration
In the previous fiscal year (2023–24), his total remuneration was ₹66.25 crore, which included ₹39.03 crore from exercised Restricted Stock Units (RSUs), a form of equity compensation.
This rise in FY25 was primarily due to the exercise of stock options valued at ₹49.5 crore, compared to ₹39 crore in the previous year.
His base salary remained steady at ₹7.5 crore, while his retiral benefits stood at ₹50 lakh. His variable pay also increased to ₹23.2 crore from ₹19.8 crore in FY24.
Salil Parekh’s remuneration for fiscal 2025 included ₹49.50 crore from exercising 3,06,276 RSUs under the 2015 Plan and 39,141 RSUs under the 2019 Plan.
Salil Parekh’s pay hike amid job cuts
The rise in Parekh’s pay comes at a time when Infosys has cut jobs and slashed variable pay. The company let go of hundreds of trainees at its Mysuru campus amid growing market uncertainty.
Infosys hired 15,000 college graduates in FY25 and closed the year with more than 3.2 lakh employees. As of the fiscal year 2024–25, the company employs an impressive 3,23,578 professionals across the globe, serving 1,869 active clients across 59 countries.
Infosys posts steady profit growth in FY25
Meanwhile, Infosys on April 17 reported profit of Rs 26,713 crore in FY25, registering a marginal increase of 1.8 per cent over FY24.
Revenues climbed 6.06 per cent to reach Rs 1,62,990 crore, exceeding its guidance of 4.5-5 per cent for the full FY25.