Salary packages of Infosys8217; Gopalakrishnan,Shibulal decline by nearly 30

Infosys paid 104,661 in total compensation to Gopalakrishnan for FY13.

Executive co-chairman Kris Gopalakrishnan and chief executive SD Shibulal,who are also the founding members of Indias second-largest IT services exporter,have witnessed a massive 28 decline in their annual salary package for the 2012-13 fiscal.

In a filing to the US Securities and Exchange Commission SEC,Infosys said that it paid 104,661 in total compensation to Gopalakrishnan for FY13 which shows a 29 decline when compared with 147,401 paid to him during FY12. Similarly,Shibulal received an annual compensation of 104,659 for FY13,against 145,876 in FY12,showing a steep fall of nearly 28.

The annual package includes the salary,bonus and incentives and other annual compensation. This does not include the amount accrued for long-term benefits. This sharp fall in compensation for FY13 was largely on account of severe cut in the bonus and incentive component.

A similar trend is also witnessed among the other key executives of Infosys,whose compensation decline was almost in the same line as the CEO and co-chairman. V Balakrishnan,former CFO of Infosys who now looks after other businesses of the company,saw a 37 fall in the total compensation. For the fiscal 2012-13,Balakrishnan was totally paid 351,043,against 561,232 in FY12.

Even other top executives and board members like Ashok Vemuri and BG Srinivas saw a 23 and 27 decline in their annual compensation,respectively.

Chandrasekar Kakal,head of Infosys enterprise solution unit,also saw a massive fall of 40 in total compensation for FY13 touching 268,933,against 444,768 in FY12.

Though,there were others who managed to get an increase in total compensation with Stephen Pratt,head of Infosys consulting business,becoming the highest-paid executive. For FY13,Pratt received a total package of 2,129,785,showing a rise of 7 compared with 1,986,653 in FY12.

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Basab Pradhan,global sales head of the company,saw a 9 jump in total compensation to touch 505960 in FY13.

The overall fall in total compensation for the top executives at Infosys is also a reflection of the overall trend within the Indian IT industry which,of late,is witnessing a single digit hike in annual salaries.

During the fourth-quarter results,the Bangalore-based firm did not give any clear indication on wage hike for fiscal 2013-14. On increments,the firm pointed out that it will communicate directly with the employees. Usually,Infosys effects appraisals in the very beginning of the fiscal effective April.

However,in FY13,Infosys took a drastic step to withhold wage hikes till it gained more clarity on its business.

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Later in October 2012,the software-services company doled out an average 6 hike for employees in India and 2-3 outside the country. However,for its onsite workforce,salary increment was implemented from January 1,2013.

According to a recent Compensation Trends survey by consulting firm Deloitte in India,across all levels,variable pay percent median for top management in the IT sector,is down to 18.7 from last years 25,while senior management is down to 17.5 from 20. However,at the top management level the increments projected have gone up to 11.6 this year from 9 last year.