Bengaluru: Salil Parekh, incumbent CEO and MD of India’s second largest IT company, Infosys, will be paid a fixed salary of Rs 6.5 crores and would be eligible for variable pay of Rs 9.75 crores at the end of the 2018-2019 fiscal year.
For the period spanning his joining date, January 2 to March 31, Parekh would be entitled to an initial variable pay of Rs 2.38 crore, according to the postal ballot filed by the IT major.
Parekh, who is expected to serve a five-year term at the helm of IT behemoth, will also receive Rs 3.25 crores in restricted stock units, Rs 13 crores in annual performance equity grants and a one-time equity grant of Rs 9.75 crores. The stock compensation will vest at different points over Parekh’s term.
It was the compensation of company’s former CEO and MD Vishal Sikka, that was subjected to lot of criticism by founder NR Narayana Murthy. Sikka’s total compensation for fiscal year 2016-17 was Rs 45.11 crore, although the fixed component in Sikka’s package was just $1 million (Rs 6.33 crore). Sikka, ultimately made unceremonious exit from the IT behemoth in August last year.
Parekh’s severance pay has been fixed at 50% of his basic pay and 50% of his bonus, in case he leaves the company. The high severance payment made by company to its former CFO, Rajiv Bansal snowballed into a major controversy.
Parekh, has been appointed for 5-year term, with an option to extend it for 3 more year.