Infosys CEO Salil Parekh's salary drops by 21% to Rs 56.44 crore in FY23

Infosys CEO Salil Parekh's total compensation fell by 21 per cent to Rs 56.44 crore in the fiscal year 2022-23, according to the company's annual report. It is down from Rs 71 crore in the previous year. Parekh's base salary was Rs 6.67 crore, while his performance-linked bonus was Rs 18.73 crore. He also received Rs 9.71 crore in stock awards and Rs 45 lakh in other benefits.

The decline in Parekh's compensation was due to a number of factors, including lower stock option exercises and a change in the company's bonus plan. In the previous year, Parekh's compensation had included Rs 52.33 crore worth of stock options, which were not exercised in the current year. The company also changed its bonus plan to make it more performance-based, which resulted in a lower bonus for Parekh.

Despite the decline in his compensation, Parekh's pay is still significantly higher than the average Infosys employee. The average Infosys employee earned Rs 10.3 lakh in the fiscal year 2022-23.

Infosys said Parekh received Rs 30.6 crore of the Rs 56.44 crore payout by exercising his RSUs. Last fiscal, Parekh earned Rs 52.33 crore by exercising his RSUs, making him one of India's highest-paid CEOs.

Meanwhile, Infosys's median remuneration of employees (MRE) increased to Rs 9,00,012 in FY23 from Rs 8,14,332 in FY22.

After accounting for promotions and other event-based compensation revisions, the average yearly rise in employee salaries in India was 9.9 per cent. Employees outside India earned compensation increases in line with market trends in their respective countries, according to the annual report.

“In the past few quarters, we have seen the global economy dealing with inflation, interest rate increases, and changes in demand environment for companies in various industries. Our strength in digital, cloud, and in automation, along with cost efficiency capabilities have held us in good stead. These will continue to be critical in the evolving economic environment," Parekh said in a letter to shareholders.

However, Parekh was not the highest-paid employee at Infosys. Mohit Joshi, the company's president, who left in March after being named as CEO of Tech Mahindra made Rs 57.32 crore in FY23.

In his letter to shareholders, Parekh stated that FY23 was a great year for the company's business, with over 15 per cent growth and $2.5 billion in operating margins.

“Last year we returned US$3.1 billion to our shareholders – US$1.7 billion as dividend and US$1.4 billion through our share buyback program. At the end of the financial year, we were the leading company among our peers in total shareholder return over the past five years,” he said.

“Our strength in digital, cloud, and in automation, along with cost efficiency capabilities have held us in good stead. These will continue to be critical in the evolving economic environment,” he said.

Parekh has been CEO of Infosys since 2014. He has overseen a period of strong growth for the company, with revenue and profits more than doubling during his tenure. Infosys is now one of the largest IT services companies in the world.

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