Infosys CEO Salil Parekh’s salary has been increased to Rs 79.75 crore per annum, which is 88 per cent higher from his previous salary of Rs 42.50 crore, said the company’s annual report for fiscal 2022.
This makes him one of the highest paid executives in India. The company provided the sharp hike citing industry-leading growth in the recent years.
It said that any comparison of CEO’s salary should be seen in the context of the company’s performance and stock price growth. The firm said it considered key factors such as total shareholder return, rise in market cap and growth while recommending his reappointment and change in remuneration.
As per the company’s annual report released on Thursday, the new employment agreement, which is subject to shareholder approval, will come into effect on July 2.
For fiscal FY22 that ended in March, Parekh took home a salary of Rs 71 crore, as per reports. However, of the total Rs 52 crore came from exercising restricted stock units granted to him before.
The latest round of hike comes days after the company reappointed him as MD and CEO for five more years starting from July 1.
“Under his leadership the total shareholder return (TSR) was an impressive 314 per cent, the highest among peers. Revenue has grown from Rs 70,522 crore (fiscal 2018) to Rs 1,21,641 crore (fiscal 2022), a compound annual growth rate of 15 per cent (versus nine per cent for the four years before that) and the profits have also increased from Rs 16,029 to Rs 22,110 crore,” the company said.
Further, the company said it has more than doubled the share of digital revenue from 25.5 per cent FY18 to 57.0 per cent FY22.