Infosys awards CEO Salil Parekh ₹52cr in stock
What's the story
Infosys, India's second-largest IT services company, has awarded its Managing Director and CEO Salil Parekh stocks worth ₹52 crore for the fiscal year 2026. The award includes equities worth ₹34.75 crore and an ESG-linked annual performance equity award of ₹2 crore. The latter is linked to the company's achievement of certain environmental, social, and governance (ESG) targets.
Performance incentives
Performance-based shares and RSU grants
Along with the initial award, Parekh is also eligible for up to ₹15 crore in performance-based shares. This includes a ₹5 crore Restricted Stock Unit (RSU) grant that will vest on or after March 31, 2027, based on the company's two-year cumulative relative Total Shareholder Return (TSR). There is also a ₹10 crore RSU grant under the Infosys Expanded Stock Ownership Program 2019 which will vest after one year if certain targets are met.
Grant details
RSUs to be granted on May 2, 2026
All the RSUs mentioned above will be granted on May 2, 2026. The number of units will be determined by the closing price of Infosys shares on the day before the grant date. Parekh had previously received 382,071 Restricted Stock Units worth nearly ₹50 crore in FY25, which accounted for over 60% of his total remuneration for that year.
Future prospects
Possible 2-year extension for Parekh as CEO
Parekh's current term as CEO is set to end in March 2027. However, media reports suggest that Infosys may be considering a two-year extension for him. This move is likely part of succession planning efforts as the company seeks to ensure leadership continuity amid industry disruptions. A potential leadership transition at Infosys would be closely monitored by investors, especially in the labor-intensive IT sector currently facing slow growth and AI-led disruption concerns.