This might be attributable to reasons such as reduced stock option exercises and a change in Infosys’ bonus structure, which both contributed to the decline in Salil Parekh’s overall compensation as CEO of Infosys.
A story published in Business Today claims that the Indian information technology giant Infosys has reduced the amount of money that its CEO, Salil Parekh, will make for the fiscal year 2022-2023.
The annual report of Infosys disclosed that Salil Parekh’s total remuneration for the fiscal year 2022-23 was Rs 56.44 crore, which is a 21 percent decrease in comparison to the salary that he received the previous year. Over the course of the fiscal year 2021–2022, Parekh was paid a total of Rs 71 crore in pay.
The overall compensation package that Parekh receives includes the following components: a basic salary of 6.67 crore, a performance-linked bonus of 18.73 crore, stock awards of 9.71 crore, and additional benefits totaling 45 lakh rupees.
A number of variables, including fewer stock option exercises and a modification to Infosys’s bonus structure, contributed to the decrease in Parekh’s total compensation, which can be explained by this. The prior year’s total compensation for Parekh included stock options with a value of Rs 52.33 crore that were not exercised by the employee. The fact that Infosys changed its bonus scheme such that it is now more dependent on performance is another factor that contributed to the CEO receiving a smaller compensation.
Parekh’s profits nevertheless topped those of the typical Infosys employee despite the fact that his salary had been reduced by 21%. During the fiscal year 2022-2023, an Infosys employee might expect to receive a complete compensation package worth 10.3 lakh rupees on average.
It was reported earlier that Infosys had decreased the average variable pay of its employees by forty percent for the quarter that would end in March 2023. This meant that employees would, on average, get sixty percent of the variable compensation that had been promised to them.
In an email sent to staff, Infosys admitted that the previous quarter was affected by a volatile market and unanticipated occurrences, but the company stressed the need of employees maintaining vigilance and viewing the current environment as a chance to band together and navigate the shifting economic landscape. The company has expressed confidence in its capacity to adapt efficiently to disturbances in the market and continue on with its operations.