CEO Salil Parekh to earn less than Vishal Sikka at Infosys
Infosys gave a low key
welcome to Parekh, unlike the aggressive marketing exercise it undertook to
welcome Sikka
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NEWS : Salil Parekh will
earn an annual salary of Rs 162. 5 million ($ 2.55 million) as the CEO of Infosys, less than what Infosys
had offered his high-profile predecessor Vishal
Sikka, who quit the firm after three years in turmoil.
The compensation also reflects the
reality at Infosys and its chairman Nandan Nilekani who would like the
low-profile senior executive to execute a vision of focused delivery for
customers rather than over-promise and under-delivery that would be in contrast
with the company's culture.
Parekh, the soft-spoken executive
who was poached from global rival Capgemini, will get an annual fixed salary of
Rs 65 million and a variable pay of Rs 97.5 million that would be compensated
based on achieving metrics set by the company.
The second non-founder CEO at
Infosys is also being offered a generous compensation in stock. He is being
paid an annual equity grant of Rs 32.5 million; an annual performance stock
award of Rs 130 million and a one-time equity grant worth Rs 97.5 million that
would be vested over two years, the company said in its postal ballot disclosed
in regulatory filings. This would amount to Rs 260 million, taking his total
compensation to Rs 422.5 million ($6.65 million)
Sikka, who had a tumultuous
three-year stint at Infosys, had signed up for a $11-million package, including
stock options. However, in fiscal 2017, the last of the three-year term, Sikka
earned Rs 451 million ($7 million), as
he struggled to grow business faster in a volatile business environment and the
battle he was facing internally with the entrenched system at Infosys.
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