Global software major Infosys would pay its new Chief Executive Officer and Managing Director (CEO&MD) Salil S. Parekh a whopping Rs 16.25 crore salary per annum, the IT major said on Thursday. In a regulatory filing on the BSE, the company said in addition to Rs 6.5 crore fixed pay and Rs 9.75 crore variable pay, Parekh would get restricted stock units (RSUs) or shares (Rs 5 face value) equivalent to Rs 3.25 crore as annual equity grant and annual performance equity grant worth Rs 13 crore, taking the package to Rs 32.5 crore per annum for five years.
“The compensation for Parekh is subject to approval of shareholders through postal ballot and electronic voting by February 20, 2018,” said the filing.
The company’s Board has appointed its Company Secretary Parameshwar G. Hegde as the scrutiniser for conducting the postal ballot and e-voting. The company’s blue-chip scrip of Rs 5 face value was quoting Rs 1,016.75 per share on the BSE in the pre-noon trading on Thursday after opening at Rs 1,022 and as against Rs 1,019.10 closing rate on Wednesday. The resolution also sought the investors’ approval for Parekh’s appointment as the CEO and MD and Additional Director on the Board from January 2, 2018 to January 1, 2023.In addition to salary and stock options, Parekh will get health and life insurance as applicable to his executive post.
“Compensation benefits will include paid vacation, travel and entertainment expenses as applicable to the company’s executive,” added the filing.
As the variable pay (Rs 9.75 crore) will be applicable from April 1, the company will pay Parekh Rs 2.4 crore from January 2 to March 31 of this fiscal (2017-18).
“The variable pay (Rs 9.75 crore) will be payable subject to the company’s achievement of certain milestones determined by the Board or its committee from time to time,a noted the filing.
Parekh will also be given a one-time equity grant of RSUs having a value equal to Rs 9.75 crore in two instalments of 50 per cent each on the first anniversary of the grant date and its second anniversary. According to other terms of the appointment resolution, Parekh’s five-year term has an option of renewed it further for another three years subject to the shareholders’ approval.
“Parekh, 53, will retire upon attaining the age of 60 years,” added the filing.
In the event of leaving the company during the tenure, Parekh or the company has to give a three-month notice. Parekh joined the city-based outsourcing firm on Tuesday after the Board appointed him on December 2. A veteran in the software industry, Parekh is the second non-founder executive of the $10-billion firm after the exit of the first non-promoter CEO Vishal Sikka in August following a spat with its co-founders over governance issues last year. Prior to joining Infosys, Parekh was an executive board member of the Paris-headquartered global consulting, technology and IT firm Capgemini.Parekh has Masters degrees in computer science and mechanical engineering from Cornell University in the US and a B.Tech degree in aeronautical engineering from IIT-Bombay.