Infosys has decided to pay Rs 32.5 crore (approximately $5.12 million) annually to its new CEO, Salil Parekh which is about $11million less than what was paid to its former CEO Vishal Sikka. One probable reason behind can be that Sikka was based in US while Parekh is stationed at Bengaluru.
Parekh will be paid 6.50 crore as his annual salary and a variable portion of Rs 9.75 crore. The latter will be "subject to the company's achievement of certain milestones as determined by the board or its committee, in its sole discretion, from time to time,". In addition, an old executive will also be paid ‘an annual equity grant of restricted stock units (RSUs) worth Rs 3.25 crore for three years and an annual performance equity grant of RSUs worth Rs 13 crore upon completing three years in 2021 subject to achieving certain milestones. He will also be paid a one-time Rs 9.75 crore in stocks’.
Sikka had joined as a non founder CEO in August 2014 and had a fixed compensation of $3 million and $8 million was variable. However in last year of 2016-2017 he received $3.68 million of variable pay.
Phil Fersht, CEO of HfS Research said: “The flamboyant western salary and private jet use of Sikka created a major perception issue for Infosys internally. Parekh's salary seems lower than most of his peers, which is understandable considering this is his first CEO gig,"
He also said that Parekh can make a lot of money by his performance as it is all about perception appeasing Narayana Murthy said that “Infosys will not behave like silicon valley again”. US based “Cognizant's Francisco D'Souza, , received a compensation of $12 million (Rs 76.1 crore) for the year ended December 2016, Before becoming CEO, TCS' Rajesh Gopinathan was paid Rs 6.22 crore. Wipro's Abidali Neemuchwala, who is based in the US, was paid about Rs 13.3 crore ($2.09 million) for 2016-17”.
Courtesy/By: Rishabh Agarwal
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08 Jan 2018
