BENGALURU: Infosys CEO Salil Parekh‘s salary rose to Rs 49 crore in the last fiscal compared to Rs 34 crore in the year before, an increase of 45%. The increase was mainly due to Parekh exercising his restricted stock units (RSUs) worth Rs 31 crore during the fiscal, up from Rs 17 crore in fiscal 2019-20, the company’s latest annual report shows.
The ratio of Parekh’s salary to the median remuneration of employees increased to 689: 1 from 502:1. The median remuneration of employees was Rs 7.2 lakh in fiscal 2021, up from Rs 6.8 lakh in fiscal 2020, an increase of 5.9%. Infosys said overall wages at leadership levels remained constant and there were no promotions during the last fiscal at the top level.
The KMPs (key managerial personnel) have not received any compensation increase in fiscal 2021, but the numbers are higher due to increase in perquisite value of stock incentives granted in previous years but exercised during the year, and on account of increase in performance-based variable pay.
President Mohit Joshi took home a salary of Rs 34 crore compared to Rs 15 crore in the year before. “Our cross-functional teams have brought the best of all our capabilities together by working in unison, to support and drive the digital transformation journeys of our clients. Demonstrating client relevance has become one of our main differentiators,” Parekh said in the report.
Chairman Nandan Nilekani said that under Parekh, the company has turned into a more client-focused company. “Our stable and motivated leadership is working quietly and without fuss to ensure Infosys is the partner of choice for the world’s top companies as they navigate their next in these uncertain and rapidly changing times. This has led to unprecedented transformational large deals,” he said.
That has helped the company report market-leading growth for the last two years with more focus on digital deals, which accounts for more than half of the topline. The company had over $14 billion of large deals last year, the highest in its history.
Nilekani added that the world is seeing three major changes: hybrid work model induced by the pandemic, technology transformation driven by rapid cloud adoption, and digital acceleration of business. “Never before have our clients so overwhelmingly expressed the need for a voice of clarity in the chaos and confusion. They are vocal in their ask for a partner who puts clients’ best interests over their own and for a thought leader who can navigate them to their future,” he said.
No. of crorepatis rises to 97 from 74
Infosys had 97 crorepatis in 2020-21, compared to 74 in the year before. A significant part of the increase in remuneration in the 2021 fiscal year was on account of the higher perquisite value of stock incentives granted in previous years and exercised during the year.
Special bonus for COO Pravin Rao
Infosys is seeking to grant a one-time special bonus of Rs 4 crore to COO U B Pravin Rao on his retirement in December this year, after a career spanning 35 years. The company said this is “in view of his outstanding contribution to the company especially for his leadership during the pandemic.”
The company has sought a resolution for approval. Infosys said Rao led comprehensive efforts to scale up IT infrastructure, enhance focus on employee safety, health and wellbeing, and manage the operations successfully during the pandemic, demonstrating extraordinary operational resilience. It has also sought shareholder approval for accelerated vesting of 31,725 RSUs due for vesting during fiscal 2022.