Infosys cut CEO Salil Parekh's pay by 21% in 2022-23: Report
By Vipin Vijayan | First Published Jun 4, 2023, 5:04 PM ISTThe decline in CEO Salil Parekh's total salary can be attributed to factors such as lower stock option exercises and a change in Infosys' bonus plan.
Indian IT tech company Infosys reportedly slashed the salary of its CEO, Salil Parekh for the financial year 2022-23, a Business Today report has claimed.
The annual report of Infosys revealed that Salil Parekh's total salary for the financial year 2022-23 was Rs 56.44 crore, which is a 21 per cent reduction compared to the previous year. In the financial year 2021-22, Parekh received a total salary of Rs 71 crore.
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Parekh's total salary consists of a base salary of Rs 6.67 crore, a performance-linked bonus of Rs 18.73 crore, stock awards of Rs 9.71 crore, and other benefits of Rs 45 lakh.
The decline in Parekh's total salary can be attributed to factors such as lower stock option exercises and a change in Infosys' bonus plan. In the previous year, Parekh's total salary included Rs 52.33 crore worth of stock options that were not exercised. Another reason for a lower bonus for the CEO was that Infosys revised its bonus plan to be more performance-based.
Despite the salary reduction of 21 per cent, Parekh's earnings still exceeded those of the average Infosys employee. The average total salary of an Infosys employee in the financial year 2022-23 was Rs 10.3 lakh.
Earlier, it was reported that Infosys had reduced the average variable pay of its employees by 40 per cent for the quarter ending in March 2023. This meant that employees would receive 60 per cent of their promised variable pay on average.
In an email to employees, Infosys acknowledged that the last quarter was impacted by a volatile market and unforeseen events, but emphasized the need for employees to stay vigilant and view the current climate as an opportunity to rally together and navigate the changing business landscape. The company expressed confidence in its ability to respond effectively to market disruptions and move forward.
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