Daijiworld Media Network - Bengaluru
Bengaluru, Apr 24: Infosys has approved stock incentives worth about Rs 52 crore for its chief executive officer and managing director Salil Parekh, as part of his annual performance-linked compensation.
The decision was cleared by the company’s board following recommendations from the Nomination and Remuneration Committee, according to an exchange filing dated April 23.
The incentives are structured under multiple performance-based plans in the form of restricted stock units (RSUs). These include Rs 34.75 crore under the annual performance equity grant, Rs 2 crore linked to environmental, social and governance (ESG) targets, Rs 5 crore tied to total shareholder return (TSR), and Rs 10 crore under the 2019 performance plan. In total, the grants amount to Rs 51.75 crore and will vest over one to two years, subject to achievement of specified milestones.
The RSUs will be granted effective May 2, with the number of units determined based on the prevailing market price prior to the grant date. The structure remains broadly in line with the previous year, when similar stock incentives of around Rs 50 crore were awarded to Parekh.
Meanwhile, Infosys reported a 27.8 percent quarter-on-quarter rise in net profit at Rs 8,501 crore for the March quarter. Revenue stood at Rs 46,402 crore, marking a 2 percent sequential increase, largely in line with market expectations.
The company continues to adopt a cautious stance amid a challenging macro environment. Chief financial officer Jayesh Sanghrajka said the company is yet to decide on wage hikes for the current fiscal, with both timing and extent still under review.
The delay comes as the IT services sector faces a low-growth phase, with discretionary spending under pressure and slower deal ramp-ups. Infosys has projected revenue growth of 1.5 percent to 3.5 percent for FY27, reflecting continued caution.
Despite this, the company is maintaining investments in key areas such as artificial intelligence and digital capabilities, while taking a measured approach to costs, including employee compensation.
The latest stock grant underscores continuity in Infosys’ executive compensation policy even as broader decisions on employee pay remain pending.