Infosys recently roped in Salil Parekh as their new CEO. The new CEO will be paid a salary of whopping Rs 6.5 crores. Reports suggest that Parekh would be eligible for a variable pay of Rs 9.75 crores at the end of the 2018-2019 fiscal year.
Infosys has sought shareholder approval for Salil Parekh’s appointment. As per the proposal which is still under consideration and will be voted for by the shareholders of the company, Parekh will get an annual salary of Rs 6.5 crore (fixed pay). He will also be eligible for maximum 125 percent of the annual variable pay of Rs 9.75 crore.
In addition, the new Infosys CEO will also receive Rs 3.25 crore in restricted stock units, Rs 13 crore in annual performance equity grants and a one-time equity grant of Rs 9.75 crore.
Salil Parekh has been appointed as the CEO of Infosys for a term of five years. Parekh took over from Infosys’ interim CEO U B Pravin Rao on Tuesday. The salary structure of the new CEO has been the talk of the town since then. More so, as former CEO Vishal Sikka’s salary had come in for criticism from Infosys founder NR Narayana Murthy. Sikka had drawn a total compensation of Rs 45.11 crore in the financial year 16-17.
Vishal Sikka had quit from his post at Infosys last year after a row with Infosys founders. High salary hikes for the leadership team was a key issue raised by the Infosys founders last year against Sikka. After the resignation of Sikka and many board members like the chairman- R Seshasayee, last year, Infosys brought in co-founder Nandan Nilekani to the company.
Later in December, Infosys named Salil Parekh as its new CEO and Managing Director. Prior to his appointment as Infosys CEO, Parekh was previously a member of the group management board at Capgemini, after Ernst & Young’s consultancy division. Parekh quit E&Y’s consultancy division after it was merged into the company.
