How much does Salil Parekh, new Infosys CEO, earn?
After months of search, Infosys finally decided on its new CEO last December. Salil Parekh took charge the day before yesterday. His position is undoubtedly one of the most reputed in the sector. Former CEO Vishal Sikka had left amid much controversy. But do you know how much Parekh gets for his job? His salary stands at Rs. 16.25cr, plus other benefits. Here's more.
Parekh, a B.Tech in Aeronautical Engineering (IIT-Bombay) and a Masters in Computer Science (Cornell University), was previously the head of Capgemini's Asia-Pacific, North America and UK division, and the Head of Cloud Infrastructure Services, Sogeti & Cloud Services. He joined Ernst & Young's consulting business in 1992, which was acquired by Capgemini in 2000. He worked for Capgemini India for 14 years.
Parekh will get a fixed salary of Rs. 6.5cr and Rs. 9.75cr in variable pay at the end of 2018-19, board member Kiran Mazumdar Shaw said. Then there will be Rs. 3.25cr in restricted stock units, Rs. 13cr in annual performance equity grants and a one-time equity grant of Rs 9.75cr, Shaw added. The stock compensation will vest at different points.
However, if he fails to meet targets, his remuneration will take a hit, with fixed salary of Rs. 6.5cr and annual equity grant of Rs. 3.25cr. He will receive the one-time equity grant irrespective of performance. Initially, till March'18, he will receive a variable pay of Rs. 2.37cr. Parekh has a five-year term. The contract comes with a non-compete clause.
In April'17, former CEO Sikka had got a hike of 55%, post which his salary package stood at Rs. 73.4cr. Infosys had said it could become Rs. 20cr if the firm fails to meet its targets. The hike was the basis for much criticism led by founder Narayana Murthy, who batted for "compassionate capitalism". However, unlike other billionaire co-founders, Sikka didn't hold 12.75% stake.
