Info-tech

Infosys grants stock units worth Rs 10 crore to CEO Salil Parekh

Our Bureau Bengaluru | Updated on May 16, 2019 Published on May 16, 2019

Salil Parekh , Infosys CEO and Managing Director   -  Somashekar GRN

Also sets aside 5 crore shares to a broad base of employees

Infosys plans to grant annual performance-based stock incentives in the form of restricted stock units (RSUs) with a market value of Rs 10 crore to its CEO and Managing Director, Salil Parekh. It has also set aside 5 crore shares to be distributed to a broad base of employees that will vest based on performance criteria.

This is part of the Infosys expanded stock ownership programme-2019, the company said in a release. It also carried out a change in the terms of appointment of Parekh by reducing the vesting period of annual performance equity grant to one year from three years. The grant of stock incentives is being given to Parekh to incentivise him to increase shareholder value and to drive execution excellence of the agreed business strategy.

Infosys’ COO, UB Pravin Rao will also get RSUs worth Rs 4 crore. The vesting period for Rao is 12 months from the date of each grant.

The IT major said its board has approved theProgram that links long term employee incentives with shareholder value creation. Subject to shareholder approval, this plan proposes to allocate 5 crore shares, equating 1.15 per cent of the company’s equity shares, to a broad base of employees.

The grants allocated to employees over a period of seven years will vest based on: relative total shareholder return (TSR) against an industry peer group; relative TSR against domestic and global indices; and operating lead performance metrics such as total revenue and digital revenue growth, and operating margins.

“Infosys has been a pioneer for many firsts in India, and this program is a key milestone as it sets another benchmark in the industry. Our employees are our biggest asset, and through this program we aim to recognise and reward individuals who are committed to driving value creation for all stakeholders through their continued and consistent performance. By making employees owners, they get an opportunity to be beneficiaries in the long term success of the company and realize the results of their work and dedication,” Parekh said.

Published on May 16, 2019
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