Infosys CEO Salil Parekh’s Compensation Jumps 17.3% in FY24

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Infosys CEO Salil Parekh has emerged as the second-highest paid chief executive officer (CEO) in the Indian information technology sector in FY24 with a total compensation of Rs 66.25 crore. This figure marks a significant increase from his FY23 compensation of Rs 56 crore, showcasing a noteworthy jump of 17.3%. Parekh’s salary is only surpassed by Wipro’s former CEO Thierry Delaporte, who earned $20 million (about Rs 166 crore) in FY24. The rise in Parekh’s compensation for FY24 was primarily driven by the higher number of restricted stock units (RSUs) exercised during the year, according to Infosys’ annual report. Restricted stock units are a form of equity compensation offered to employees, and Infosys provides them based on both time and performance indicators.

In the breakdown of Parekh’s remuneration, it was revealed that out of the total Rs 66.25 crore, he earned Rs 39.03 crore through exercising his RSUs. Additionally, his base pay stood at Rs 7 crore, with Rs 47 lakh in retiral benefits. Parekh’s variable pay also witnessed a substantial increase, reaching Rs 19.75 crore in FY24 from Rs 12.62 crore in FY23. Notably, Parekh’s total compensation amounted to 677 times the median remuneration of the company’s employees at Rs 9.77 lakh. This significant difference in pay comes at a time when Infosys has undergone changes in its hiring model, amidst a period of heightened uncertainty in the IT sector.

In his communication to shareholders, Parekh highlighted the company’s focus on executing its strategies effectively, resulting in growth and operational margin resilience. He emphasized the collaboration with clients on cost, efficiency, automation, and consolidation programs, leading to the generation of $17.7 billion in large deals throughout the year. Parekh also mentioned the recruitment of nearly 11,900 college graduates and the upskilling of over 2,50,000 employees in Artificial Intelligence (AI) skills during the fiscal year.

Comparatively, other CEOs in the Indian IT sector received varying compensation packages in FY24. Wipro’s former CEO received over $20 million, TCS’s CEO Krithivasan earned Rs 25.36 crore, and HCL Technologies’ CEO Vijayakumar garnered Rs 28.4 crore. The trend indicates a competitive landscape amongst top IT companies in compensating their key leadership positions, reflecting the industry’s growth and evolution.