During the around 3-year tenure of Vishal Sikka, investor wealth grew 7.61% to ₹2.12 trillion from ₹1.97 trillion
During this period Parekh earned ₹16.25 crore in cash, made up of a fixed salary of ₹6.5 crore and a variable pay of up to ₹9.75 crore
Shareholder wealth at Infosys has risen by 23.45% to ₹2.79 trillion from ₹2.26 trillion since January 2018, when Salil Parekh took over as the managing director and chief executive officer (CEO).
During this period Parekh earned ₹16.25 crore in cash, made up of a fixed salary of ₹6.5 crore and a variable pay of up to ₹9.75 crore. Plus, there’s an annual grant of ₹3.25 crore in stocks, a third of which will be vested every year over the next three years, and an annual performance equity grant of ₹13 crore which will be paid depending upon Infosys’s performance according to filings.
Now, Parekh is accused in an anonymous whistleblower complaint of fudging company profitability by misreporting performance numbers.
Parekh, who was appointed for a five-year term, was given the task of returning the company’s focus on revenue growth and business strategy. In the last 21 months, from January 2018 to September 2019, Infosys’s revenue grew 27.17% from ₹17,794 crore in the quarter ended December 2017 to ₹22,629 crore in the quarter ended September 2019. Operating profit also grew 13.73% to ₹4,912 crore from ₹4,319 crore during the same period. However, profit after tax during his tenure dropped 21.64% from ₹5,129 crore to ₹4,019 crore.
During the around three-year tenure of Vishal Sikka, Infosys’s first non-co-founder CEO, investor wealth grew 7.61% to ₹2.12 trillion from ₹1.97 trillion. During this period revenue grew 33.74% from ₹12,770 crore for the quarter ended June 2014 to ₹17,078 crore for the June 2017 quarter. Operating profit also grew 28.03% to ₹4,111 crore from ₹3,211 crore, while profit after tax rose 20.69% from ₹2,886 crore to ₹3,483 crore.
Significantly, unlike the 2015 employee stock ownership plan for Sikka, which was time-vested, Parekh’s incentives were made performance-linked under a stock ownership programme approved by shareholders in June 2019. Infosys said in May that to retain talent its board had approved a series of performance-based incentives for its employees. The board also approved stock incentives for Parekh and chief operating officer U.B. Pravin Rao, which included the ‘Expanded Stock Ownership Program 2019’ that proposed to allocate 50 million shares to incentivize employees based on performance, accounting for about 1.15% of the equity share capital of the company.
Infosys said Parekh will be granted annual performance-based stock incentives in the form of restricted stock units (RSUs) worth ₹10 crore under the 2019 plan. Infosys proposes to grant Rao annual performance-based stock incentives in the form of RSUs worth ₹4 crore that will vest 12 months from the date of each grant.