The nomination and remuneration committee at Infosys Ltd has proposed a sharp 88% increase in chief executive officer Salil Parekh’s annual compensation to ₹79.75 crore from ₹42.50 crore, according to its annual report.
While ₹11 crore is a fixed component, ₹68.75 crore will be linked to performance, it said.
In FY22, Parekh received a total remuneration of ₹71 crore including stock options, while Rajesh Gopinathan, the chief executive of Tata Consultancy Services Ltd received a compensation of ₹25.8 crore.
Parekh was given a five-year extension as CEO and managing director, starting 1 July.
In comparison, average salary raises for Indian IT services companies range between 4% and 8%.
According to experts, top leadership talent will continue to command disproportionate salary.
“In a free-market, scarce commodities command a premium. Leadership for global companies is a scarce commodity in India. The demand-supply mismatch along with the enormous performance pressure that shareholders of companies place on the CEOs necessitates the payment of globally benchmarked salary,” said Abhisek Mukherjee, co-founder and director, Auctus Advisors.
The IT services major said under Parekh, Infosys’ total shareholder returns surged 314%, the highest among peers.
Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.
.
