Infosys, India’s second-largest software services firm, revealed in its annual report that its CEO, Salil Parekh, received a substantial pay hike in fiscal year 2024. Parekh’s total compensation rose 17.3% to 662.4 million rupees ($7.9 million), solidifying his position as one of the highest paid Indian IT chiefs currently in office.
Breakdown of Compensation
Salil Parekh’s impressive compensation package includes:
- Total Fixed Pay: 74.7 million rupees
- Bonuses, Incentives, and Variable Pay: 197.5 million rupees
- Stock Options Exercised: 390.3 million rupees
The significant increase in Parekh’s pay compared to the previous year is primarily attributed to a higher number of stock options exercised during the fiscal year.
Financial Performance and Forecast
Despite Parekh’s hefty pay package, Infosys recorded its slowest annual revenue growth rate ever in fiscal year 2024 in terms of constant currency growth. Looking ahead to fiscal year 2025, Infosys has forecasted revenue growth between 1% and 3% in constant currency, a figure that falls short of most analysts’ expectations of at least 2%-5% growth.
Comparisons with Other IT Chiefs
In comparison to other leading Indian IT firms, Parekh’s compensation stands out:
- Tata Consultancy Services (TCS): CEO K Krithivasan earned 253.6 million rupees in fiscal year 2024, making him the lowest paid CEO among the top four Indian IT firms.
- Wipro: New CEO Srinivas Pallia is set to earn between $4.5 million and $7 million annually for the next two years. The outgoing CEO, Thierry Delaporte, earned a staggering $20.1 million in fiscal year 2024.
Salil Parekh’s compensation package underscores his significant role and contribution to Infosys, even amid slower revenue growth. As Infosys navigates the challenges of maintaining growth in a competitive market, Parekh’s leadership and strategic decisions will be crucial in steering the company towards its financial goals for the coming years.
