Kiran Mazumdar Shaw, who is part of Infosys’s Nomination and Remuneration Committee (NRC), said the new CEO Salil Parekh will also receive Rs. 3.25 crore in restricted stock units.
Salil Parekh, the new CEO of India’s second largest outsourcer Infosys, will get a fixed salary of Rs. 6.5 crore and will be eligible for a variable pay of Rs. 9.75 crore at the end of fiscal year 2018-2019, according to a board member. Mr Parekh took charge as managing director and chief executive of Infosys on Tuesday. “Infosys CEO Salil Parekh will be paid a fixed salary of Rs. 6.5 crore. He would be eligible for variable pay of Rs. 9.75 crore at the end of the fiscal year,” independent board member of Infosys Kiran Mazumdar Shaw told news agency Press Trust of India.
Ms Shaw, who is part of Infosys’s Nomination and Remuneration Committee (NRC), also said the new CEO will also receive Rs. 3.25 crore in restricted stock units.
“He will also get Rs. 13 crore in annual performance equity grants,” she said, adding that Mr Parekh will also get a one-time equity grant of Rs. 9.75 crore.
The stock compensation will vest at different points over Mr Parekh’s term, who has been appointed for a five-year term. Mr Parekh’s employment contract also comes with a non-compete clause, Ms Shaw said.
Former CEO Vishal Sikka, who left Infosys abruptly in August last year after a prolonged standoff with the company’s promoters, earned $6.75 million (nearly Rs. 43 crore) in FY17, much to the disliking of Infosys founder NR Narayana Murthy. Wipro’s CEO Abidali Neemuchwala is getting a bit over $2 million (nearly Rs. 13 crore).
Mr Parekh’s contract also specifies the amount he will be paid should he fail to meet minimum performance targets, Ms Shaw said. The company said in a postal ballot that Mr Parekh will not work with named competitors for six months from the day he leaves the company.
He will also not work with or for a client to whom he has rendered service for the last 12 months, Infosys said.