Infosys CEO Salil Parekh has got an 88% jump in annual remuneration to Rs 79.75 crore, making him one of the highest-paid executives in the country.
The company has sought shareholders’ approval for Parekh’s reappointment as the CEO and managing director for a second five-year term beginning July 1.
According to the company’s annual report released on Thursday, Parekh, 58, took home a salary of Rs 71.02 crore in the fiscal ended March 31, 2022. This included Rs 52.33 crore from exercising RSUs (restricted stock units) granted to him earlier.
Infosys co-founder and chairman Nandan Nilekani voluntarily chose not to receive any remuneration for his services rendered to the company.
In the shareholder notice, the firm justified the big jump citing industry-leading growth in recent years. “Salil is not a first-time CEO and MD, as he was at the time of his initial appointment. Salil is the CEO of Infosys, a globally listed entity and has demonstrated successful business and overall performance since his appointment,” Infosys said.
“The company competes with global peers, particularly in North America and Europe, with almost 87% of the company’s revenue coming from these geographies, and therefore, Salil’s remuneration has to be determined, keeping in view international benchmarks,” it added.
Salil’s proposed total target remuneration vis-à-vis the remuneration most recently paid to CEOs of the peers (based on publicly available information as analysed by the company’s external advisers, Egon Zehnder) would be around the median, Infosys said.
For this analysis, the company’s peers are Accenture, Cognizant Technology Solutions Corporation, DXC Technology Company, Tata Consultancy Services, Wipro, Tech Mahindra, Capgemini, HCL Technologies, International Business Machines Corporation, and Atos SE, as defined in the Infosys Expanded Stock Ownership Programme, 2019, it added.
Under Salil Parekh, credited for turning around the organisation’s financial performance since he took charge in 2014, the company’s total shareholder return (TSR) was a staggering 314%, the highest among peers, and was comfortably above the TSR (in INR) of benchmark indices of NIFTY at 77% and S&P 500 at 117%.
Further, the revenue growth of the company under Parekh’s leadership has accelerated and grown to Rs 1.21 trillion (FY22) from Rs 70,522 crore (FY18), a CAGR of 15% (prior four years CAGR 9%) and the profits have also increased to Rs 22,110 crore from Rs 16,029 crore, the report showed.
“Our CEO, Salil Parekh, a big champion of the one Infosys approach, brought together all the capabilities and intellectual capital of Infosys to create value and make a disproportionate impact for our clients…Salil has delivered industry-leading performance for the company, and it is in the interest of the company and its stakeholders to secure the continuity and stability of the current leadership,” Nilekani said.