Table of Contents
Introduction:
Salil Parekh, the Chief Executive Officer (CEO) of Infosys, experienced a 21% reduction in his annual compensation during the Financial Year 2022-23. The company’s annual report revealed that Parekh’s salary decreased to ₹56.44 crore in FY23 from ₹71.02 crore in FY22. This decline can be attributed to a lower amount of exercised restricted stock units (RSU) and variable pay. However, Infosys reported positive growth in employee remuneration and emphasized the company’s strong performance in a challenging economic environment.
Infosys CEO’s Compensation and Employee Remuneration:
Salil Parekh’s remuneration for FY23 included ₹30.60 crore from the exercise of 1,24,783 restricted stock units (RSU). In the previous fiscal year, his salary had risen by 43%. Meanwhile, the median remuneration of employees (MRE) at Infosys increased to ₹9,00,012 in FY23, compared to ₹8,14,332 in FY22. Employees in India received an average annual salary increase of 9.9%, while employees outside India received market-based wage adjustments.
Performance and Market Conditions:
Salil Parekh acknowledged the global economic challenges, such as inflation, interest rate increases, and changes in demand across industries. He emphasized Infosys’ strength in digital, cloud, and automation, along with cost efficiency capabilities that helped the company navigate the evolving economic environment. Despite a weak quarter ending on March 31, 2023, Infosys achieved $18.2 billion in revenues for FY23, with a growth rate of 15.4% in constant currency. The company maintained an operating margin of 21%, and the growth was observed across various industry verticals and geographical regions.
Salil Parekh’s Background and Accomplishments:
Salil Parekh, one of the highest-paid CEOs globally, has extensive experience in the IT industry. He completed his aeronautical engineering from IIT Bombay and pursued a master’s degree in computer science and mechanical engineering at Cornell University in the United States. Before joining Infosys, he was a partner at EY and served on the board of Capgemini, contributing to the growth of EY in India.
Comparison with Peers:
Salil Parekh’s FY22-23 compensation of ₹56.44 crore was lower than that of his counterpart at Wipro, Thierry Delaporte, who received ₹83 crore. However, Infosys’ executive chairman, Nandan Nilekani, did not draw any salary during the year. The company’s CFO, Nilanjan Roy, experienced a 28% increase in compensation compared to the previous year.
Conclusion:
Despite a decline in Salil Parekh’s salary, Infosys reported positive growth and strong financial performance in FY23. Parekh’s strategic leadership and the company’s focus on digital transformation, cost efficiency, and automation have positioned Infosys well in the evolving economic landscape. As a leading global IT giant, Infosys continues to adapt to market trends and support its clients’ needs in critical areas of interest.