Bengaluru: Possibly in a bid to avoid criticism of high pay to its top official, global software major Infosys has said it will pay its new Chief Executive Officer and Managing Director (CEO & MD) Salil S Parekh Rs 16.25 crore salary per annum.
In a regulatory filing on the BSE, the company said in addition to Rs 6.5 crore fixed pay and Rs 9.75 crore variable pay, Parekh would get its restricted stock units (RSUs) or shares (Rs 5 face value) equivalent to Rs 3.25 crore as annual equity grant and annual performance equity grant worth Rs 13 crore, taking the total package to Rs 32.5 crore ($5 million) per annum for five years. Parekh’s overall annual compensation ($5 million) is 45 per cent less than the $11.26 million (Rs 73 crore) the company paid to Vishal Sikka per annum during his three-year tenure from August 1, 2014, to August 24, 2017.
Infosys founder NR Narayana Murthy had severely criticised the company for paying such high compensation to Sikka, saying pay for top executives should be moderate.
Sikka’s compensation included a fixed annual salary of $5.08 million, the variable pay of $4.18 million and stock options worth $2 million.
“The compensation for Parekh is subject to the approval of the Board’s special resolution by the company’s shareholders through postal ballot and electronic voting (e-voting) by February 20,” said the filing.
The resolution also sought the investors’ approval for Parekh’s appointment as the CEO and MD and Additional Director on the Board from January 2, 2018, to January 1, 2023.