Companies

Infosys CEO Salil Parekh’s salary hiked by 88% to ₹79.5 crore

BL Bengaluru Bureau | Updated on: May 26, 2022
 Infosys CEO & MD Salil Parekh

Infosys CEO & MD Salil Parekh | Photo Credit: SHAILENDRA BHOJAK

A huge percentage of the pay hike is linked to performance

Infosys leader Salil Parekh, who was recently reappointed as the CEO and Managing Director by its board for five more years, till March 31, 2027, has been given an 88 per cent hike in compensation in FY 2021-22. According to the annual report of the company, his salary has been hiked from ₹42.5 crore to ₹79.75 crore.

For the financial year 2021-22, he was paid ₹71.02 crore, of which ₹52.33 crore was for exercising 2,29,792 restricted stock units (RSUs) under the 2015 plan and 1,48,434 RSUs under the 2019 plan. It also included a base salary of ₹5.6 crore and a retiral benefit of ₹38 lakh, the report showed.

Just last week, Tata Consultancy Services (TCS) had revealed that its CEO and MD, Rajesh Gopinathan, received a 27 per cent jump in pay. The TCS annual report showed his pay had risen to ₹25.76 crore in FY22 compared to the previous pay of ₹20.36 crore in FY21.

Factors behind hike

According to the annual report, the hike in Parekh’s compensation is due to factors such as increase in market capitalisation (by ₹5,77,000 crore), and a higher total shareholder return (TSR) . It said, “Under Salil’s leadership the company’s TSR was at 314 per cent, the highest among peers and was well above the TSR of benchmark indices of Nifty at 77 per cent and S&P 500 at 117 per cent.”

The revenue of the company under Parekh’s leadership has grown from ₹70,522 crore to ₹1,21,641 crore, a CAGR of 15 per cent and the profits increased from ₹16,029 crore to ₹22,110 crore.

Published on May 26, 2022
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