Bengaluru, Feb 24 (IANS) Global software major Infosys Ltd on Wednesday extended the tenure of its first non-founder chief executive Vishal Sikka by two years to 2021 from 2019 as a reward for his initiatives and for restoring the IT firm to industry leadership.
In a regulatory filing to the Bombay Stock Exchange (BSE) after trading, the city-based company said the board had re-appointed Sikka as managing director and chief executive from April 1, 2016 to March 31 2021 on the recommendation of its nomination and remuneration committee.
The re-appointment of the former SAP honcho follows the amendment to the executive employment agreement signed on June 12, 2014, appointing Sikka for five years from August 1, 2014 to June 13, 2019 as the company’s managing director and CEO and approved by investors at an EGM on July 30, 2014.
“The management, under Sikka’s leadership, has drawn up goals for revenue, margins and people productivity for fiscal 2020-2021, which are expected to be achieved in the next five years. The board believes Sikka’s leadership is essential to achieve the goals,” the regulatory notification asserted.
The amendment also reduced the June 12, 2014 agreement term to December 31, 2016 from June 13, 2019 as approved by investors on July 30, 2014.
“The new contract is fully aligned to the period and goals set (for 2021-22) and the shareholder value creation,” the statement pointed out.
Along with extension, Sikka’s compensation package is likely to be revised upwards though no mention of the terms in the filing from $7 million (Rs.50 crore), including $2-million in restricted stock units he gets per annum this fiscal.
The 49-year-old former SAP board member joined the $8.7-billion IT services firm on August 1, 2014 after its last co-founder S.D. Shibulal demitted office July 31.
At the time of joining, Sikka’s compensation package was $5.1-million annually, including $900,000 as base salary and a variable pay of $4.2 million though not on par with chief executives of global peers.
The board also approved the postal ballot notice, entailing stock incentive compensation plan and stock incentives to eligible employees of the company and its subsidiaries, reappointment of independent directors Jeffery S. Lehman and Punita Kumar Sinha.