Infosys CEO Salil Parekh Gets 88% Pay Raise, Salary Jumps To Rs 79 Crore Per Annum: Report

The IT firm considered several factors including total shareholder return, rise in market cap and growth before suggesting Salil Parekh's reappointment and salary hike.

Infosys CEO Salil Parekh

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New Delhi: Infosys chief executive Salil Parekh’s compensation has increased 88 per cent to settle at Rs 79.75 crore per annum, according to the company’s latest annual report, said publication Mint in its report. Of the total salary, only Rs 11 crore is fixed while Rs 68.75 crore is performance-based remuneration, as per the report. The revision in compensation comes after Parekh was reappointment as CEO and MD of the company starting 1 July, 2022 and ending on 31 March, 2027.

Parekh has become the highest paid among Indian IT companies. Rajesh Gopinathan, chief executive of Tata Consultancy Services Ltd  received a total compensation of Rs 25.8 crore during FY22, as per the report.

Typically, the average hikes at Indian IT services companies range between 4-8 per cent.

Why the company proposed this hike?

The firm considered several factors including total shareholder return, rise in market cap and growth before suggesting his reappointment and revision in remuneration. 

In its annual report, the IT firm noted that the company’s total shareholder return (TSR) was up 314 per cent, the highest among peers and was well above the TSR (in rupee terms) of benchmark indices of Nifty at 77 per cent and S&P 500 at 117 per cent.

The improvement in above indices took place in Parekh’s tenure.

"The company’s market capitalization increased during his tenure by about Rs5,77,000 crore (about $69 billion). In comparison, during the preceding four-year period, prior to the appointment of Salil, the company’s TSR was 30 per cent as compared to the peers’ median TSR of 47 per cent," said the IT firm according to the report.

Infact the revenue growth of the company under Salil’s leadership has accelerated and grown from Rs 70,522 crore (fiscal 2018) to Rs 1,21,641 crore (fiscal 2022), a CAGR of 15 per cent (prior four years CAGR 9 per cent) and the profits have also increased from Rs 16,029 crore to Rs 22,110 crore.

"The Committee has also recommended a revised compensation structure considering that Salil is not a first-time CEO and MD, as he was at the time of his initial appointment. Salil is the CEO of Infosys, a globally listed entity and has demonstrated successful business and overall performance since his appointment,” the company added in supporting the raise.