New Delhi: Software major Infosys CEO and managing director (MD) Salil Parekh’s compensation has been revised upwards by 88% to ₹79.75 crore per annum, the company revealed in its latest annual report on Thursday. Of this, only ₹11 crore is fixed while ₹68.75 crore is performance-based remuneration.
In comparison, Rajesh Gopinathan, chief executive officer and managing director of India’s largest information technology or IT services firm Tata Consultancy Services Ltd (TCS) received a total compensation of ₹25.8 crore during FY22. The revised compensation comes as Parekh has been reappointed as CEO and MD of the company, commencing on 1 July, 2022 and ending on 31 March, 2027. Interestingly, the average hikes at Indian IT services companies range between 4-8%.
Performance of Infosys under Salil Parekh
Under Salil’s leadership Infosys said that, the company’s total shareholder return (TSR) was up 314%, the highest among peers and was well above the TSR (in rupee terms) of benchmark indices of Nifty at 77% and S&P 500 at 117%.
Infosys said, “The company’s market capitalization increased during his tenure by about ₹5,77,000 crore (about $69 billion). In comparison, during the preceding four-year period, prior to the appointment of Salil, the company’s TSR was 30% as compared to the peers’ median TSR of 47%. The revenue growth of the company under Salil’s leadership has accelerated and grown from ₹70,522 crore (fiscal 2018) to ₹1,21,641 crore (fiscal 2022), a CAGR of 15% (prior four years CAGR 9%) and the profits have also increased from ₹16,029 crore to ₹22,110 crore.” “These results were delivered under the Navigating your Next strategy, led by Salil, comprising scaling digital revenue, accelerating the core, localization and reskilling, which has resulted in an increased market share in a highly competitive environment,” Company added.
Infosys said Under Parekh’s leadership, it has executed its “market-differentiating” strategy by more than doubling the share of digital revenue from 25.5% (fiscal 2018) to 57.0% (fiscal 2022). It has signed large deals with a total value of about $39 billion for the four-year period from FY 2019-22.
Chairman of Infosys Nandan M. Nilekani on Parekh’s remarkable journey at Infosys and growth of the company said, “Our CEO, Salil Parekh, a big champion of the One Infosys approach, brought together all the capabilities and intellectual capital of Infosys to create value and make a disproportionate impact for our clients. This required company-wide orchestration of our strengths, deep collaboration amongst our leaders and synergising of all our business units and service lines. Salil has delivered industry leading performance for the company, and it is in the interest of the company and its stakeholders to secure.
In a letter to shareholders CEO Parekh said, “We are starting to see inflation across several markets in the world, interest rate increases, with the European conflict and continuing covid-19 impact in some geographies creating supply chain constraints. While our demand outlook is strong, we remain vigilant to ensure we are agile and evolve our approach with the changing dynamics.” “As I look ahead, nonetheless, I remain more optimistic than ever. Large enterprises and governments everywhere are adopting digital and driving transformation to make them more connected with their customers, employees, and partners. We are especially well-positioned to be the provider of choice with the set of capabilities that are most relevant to our clients.”