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Infosys CEO Salil Parekh's Remuneration Declines 21% In FY23
India's second-largest software exporter, Infosys, reported that Parekh's total compensation amounted to Rs 56.4 crore, reflecting a decline from the previous year
Photo Credit : Infosys
Salil Parekh, CEO and MD, Infosys At Q2 FY23 Press Conference
Salil Parekh, the chief executive of Infosys, experienced a 21 per cent decrease in his remuneration for the fiscal year 2022-23, as stated in the company's annual report released on Friday.
India's second-largest software exporter, Infosys, reported that Parekh's total compensation amounted to Rs 56.4 crore, reflecting a decline from the previous year.
The disparity in remuneration can be attributed to a decrease in stock options exercised compared to the previous fiscal year. Parekh's compensation package included Rs 30.6 crore from stock options, as he exercised 1,24,783 stock units under the 2015 stock option plan and 73,962 units under the 2019 plan during the last fiscal year. Additionally, his pay comprised Rs 18.73 crore in variable pay and Rs 45 lakh in retiral benefits.
In the preceding year, ending in 2022, Parekh took home Rs 71 crore, which encompassed Rs 52.33 crore worth of stock options exercised.
This contrasts with the compensation of Thierry Delaporte, the CEO of Wipro, Parekh's counterpart, whose remuneration declined by 5 per cent in dollar terms to USD 10 million (approximately Rs 83 crore) in FY23, as per filings with the US Securities and Exchange Commission (SEC) reported last week. Furthermore, Chairman Rishad Premji's compensation also halved in dollar terms to USD 951,353 compared to the previous year.
Interestingly, Nandan Nilekani, executive chairman and non-independent director of Infosys, did not draw any remuneration for the year. Meanwhile, the company's Chief Financial Officer Nilanjan Roy witnessed a 28 per cent increase in compensation to Rs 10.61 crore. Mohit Joshi, who stepped down as president in March, received a payment of Rs 57.3 crore and has been appointed as CEO designate of Tech Mahindra.
In his message to the shareholders, Nilekani emphasised the prevailing uncertainty in the world today, which he attributed to factors such as inflation, interest rates, geopolitics, demand volatility, and supply chain dislocations. He commended CEO Salil Parekh and his global leadership team for recognizing the value of advanced digital technologies like artificial intelligence (AI) and cloud, as well as their recent focus on generative AI.
Nilekani also acknowledged the limitations and challenges associated with disruptive technologies. He highlighted concerns related to AI hallucination, systemic biases, lack of explainability, and various practical, ethical, and intellectual property-related issues that remain open for debate.
In his own letter to the shareholders, CEO Salil Parekh noted that the global economy has been grappling with inflation, interest rate hikes, and shifts in the demand environment for companies across industries. He emphasized that Infosys' strength in digital, cloud, and automation, coupled with cost efficiency capabilities, has positioned the company well in the evolving economic landscape.
The Infosys CEO expressed confidence that these factors will continue to play a critical role in navigating the changing business environment.