For the first three months of 2018, Salil Parekh will be paid an ‘initial variable pay’ of Rs2.37 crore, apart from fixed salary and other benefits. Photo: Hemant Mishra/Mint
New Delhi: Shareholders of Infosys Ltd have approved the appointment of Salil S. Parekh as chief executive officer and managing director of the company, the company has said in a regulatory filing.
As per results of postal ballot and e-voting filed by the IT major, 97.96% shareholders through physical ballot and electronic mode voted in favour of appointment of Parekh on 20 February 2018. Also, 99.98% Infosys shareholders approved appointment of UB Pravin Rao as chief operating officer and whole time director, the company said in a late evening filing on Thursday.
In his first media interaction after announcement of his appointment as Infosys CEO and MD in January, Parekh had said his immediate priorities would include connecting with employees and clients to build a “road map for future” that will be announced in April.
For the first three months of 2018, Parekh will be paid an “initial variable pay” of Rs2.37 crore, apart from fixed salary and other benefits. As per the proposal, Parekh will get an annual salary of Rs6.5 crore (fixed pay), and will be eligible for maximum 125% of the annual variable pay of Rs9.75 crore (which comes to up to Rs12.18 crore), subject to achievement of certain milestones.
In addition, the ex-Capgemini executive will also receive Rs3.25 crore in restricted stock units, Rs13 crore in annual performance equity grants and a one-time equity grant of Rs9.75 crore. The stock compensation will vest at various intervals during Parekh’s term.
Vishal Sikka, who had quit from the CEO position in August last year after a protracted row with Infosys founders, had drawn a total compensation, including bonus and grant of stocks, of Rs45.11 crore in 2016-17.
Parekh was brought on board after the abrupt resignation of Sikka, who had quit in August following public spat with co-founders led by N.R. Narayana Murthy.
The founders had alleged corporate governance lapses and questioned the $200 million Panaya acquisition under previous management while also flagging the high severance pay to former employees.
At 1.13pm, Infosys shares were down 0.37% at Rs1,156.15 on BSE, while the Sensex rose 0.74% to 34,071.25 points.
