Infosys CEO Salil Parekh’s remuneration at has been increased by 88 percent to 79.75 crore each year, according to the company’s latest annual report. Only 11 crore is fixed, while the remaining 68.75 crore is contingent on performance.
In comparison, Tata Consultancy Services Ltd (TCS) CEO Rajesh Gopinathan received a total pay of Rs 25.8 crore in FY22.
Parekh has been reappointed as CEO and MD of the firm. With his term beginning on July 1, 2022, and ending on March 31, 2027. Surprisingly, average raises at Indian IT services companies range from 4 to 8%.
According to Infosys, the company’s total shareholder return (TSR) increased by 314 percent under Salil’s leadership, which was far higher than the TSR (in rupee terms) of benchmark indices Nifty at 77 percent and S&P 500 at 117 percent.
“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,” Infosys said.
“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,” Infosys said.
Infosys ‘s “Market Differentiating” Strategy
Infosys claimed it had executed its “market-differentiating” strategy under Parekh’s leadership by more than doubling the share of digital revenue from 25.5 percent in fiscal 2018 to 57.0 percent in fiscal 2019. (fiscal 2022). For the four-year period from FY 2019 to FY 22 it has inked significant transactions worth almost $39 billion.
“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”. Parekh said in a letter to shareholders.