Salil Parekh, the CEO of Infosys, earned an 88% pay increase this year. Now earning Rs 79.75 crore per year, Parekh is one of India’s highest-paid senior software executives thanks to this raise. Many Silicon Valley CEOs, such as Twitter’s Parag Agrawal, earn less than $1 million per year in salary, excluding stock awards and bonuses.
In its annual report for shareholders, Infosys has revealed the CEO’s salary. According to Infosys, Parekh has played a key role in the company’s recent industry-leading growth, which has resulted in a significant increase in his salary.
Just a few days prior, Parekh was reappointed as Infosys’ Managing Director and Chief Executive Officer for a five-year term beginning July 1, 2022, and ending March 31, 2027. According to Infosys, the hefty pay raise was motivated by variables such as total shareholder return, increased market capitalization, and growth.
Around 97% of the increase in Parekh’s planned yearly salary is tied to his performance, the business noted in the annual report. He will get less than 15% of his entire goal pay under the new terms, compared to 23% under his present contract.
In its annual report, Infosys went into remarkable detail about why it decided to raise Parekh by such a significant amount. “Total Shareholder Return (TSR) under Salil’s leadership 1 was 314 percent, the highest among peers. Salil has led the company’s revenue growth from Rs 70,522 crore (fiscal 2018) to Rs 1,21,641 crore (fiscal 2022), a CAGR of 15% (previous four years CAGR was 9%). Profits have also improved from Rs 16,029 crore to Rs 22,110 crore “According to the company’s annual report, According to the IT business, digital revenue has increased from 25.5% in fiscal year 2018 to 57.0% in fiscal year 2019.
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The Committee suggested a new compensation structure for Parekh because he had “demonstrated good business and overall performance since his appointment,” according to the annual report, which explains the pay increase. There has been a rise in the number of employees under Parekh, from 2,04,107 to 3,14,015.
As a result, Salil’s payment must be based on worldwide standards, according to the company’s annual report, which cited the fact that over 87 per cent of the company’s income comes from North America and Europe.
In January 2018, Infosys named Parekh as its new CEO and managing director. Co-founder and chairman Nandan Nilekani praised him for his leadership abilities when he appointed him to the position.
While Parekh’s 88% pay increase may seem excessive, he is not the only computer worker who has seen his pay rise significantly in recent years. Soaring markets, venture capitalist money, startup booms, and the adoption of remote working have all contributed to an increase in tech industry pay over the previous two years. Indian and worldwide software businesses are scrambling to keep their best employees as the “Great Resignation” rages on, and many top engineers, product managers and members of leadership teams have seen their salaries climb significantly this year and last year.
Consider Microsoft’s announcement a few days ago that it was nearly increasing the amount it spends on employee compensation, implying that many of its top engineers and executives should expect to see their incomes nearly double.
