The compensation payable to Parekh is lower than that of former CEO of TCS, N Chandrasekaran, at Rs 30.15 crore.
Newly-appointed chief executive officer (CEO) of Infosys Salil Parekh will be paid an annual compensation of Rs 16.25 crore in the form of fixed and variable salary, and this does not include the value of the stock grants to be made by the company. Parekh, who was previously with Capgemini, will also receive a joining bonus in the form of one-time equity grant amounting to Rs 9.75 crore. He is also eligible for Rs 16.25 crore of equity grant which will be vested over different periods of time, according to a notice issued by the company to the stock exchanges. Parekh’s total compensation package which includes salary, performance pay and stock grants is much lower than his predecessor Vishal Sikka, whose package stood at $11 million (Rs 63 crore approximately). The breakup of Parekh’s compensation will include Rs 6.5 crore of fixed salary, Rs 9.75 crore of variable pay, annual equity grant of Rs 3.25 crore and performance equity grant of Rs 13 crore.
In comparison, Sikka received a total compensation of Rs 45.11 crore for FY17, which also included the value of vested stock grants. Sikka’s revised annual compensation had gone up to $11 million from $7 million, and this had become a sore point with Infosys founder NR Narayana Murthy. The compensation payable to Parekh is lower than that of former CEO of TCS, N Chandrasekaran at Rs 30.15 crore. Chandrasekaran stepped down as CEO of TCS on February 21, 2017, to take over as the chairman of Tata Group. However, Parekh’s compensation is much higher than that of Wipro CEO Abidali Neemuchwala at Rs 13.55 crore for FY17. The current CEO of TCS, Rajesh Gopinathan, received a total compensation of Rs 6.22 crore in FY17.
Under the terms of agreement with company, Parekh has been appointed for a period of five years between January 2, 1018, and January 1, 2023. This can be extended by another three years. According to the notice on the stock exchanges, under the non-compete clause, if Parekh resigns, he will not be allowed to work with competitors for a period of six months and will not work for/with a customer that he rendered services to within the last 12 months. Meanwhile, the interim CEO, UB Pravin Rao, has been re-designated chief operating officer from January 2018 till August 2022.