Infosys, the Indian IT tech titan, caused a stir in recent months by firing fresher, who fell short in an internal exam. Just like numerous tech behemoths, the company has been embracing a cost-conscious approach and even scaled back the average performance-based compensation of its workforce.
Additionally, the company’s CEO, Salil Parekh, has now experienced a dip in his overall remuneration for the fiscal year 2022-23.
As per Business Today's report, Parekh witnessed a notable 21 per cent decrease in his annual salary for the previous year. In the financial year 2022-23, his earnings amounted to Rs 56.44 crore, which is lower compared to the preceding year.
The company's annual report corroborated that Parekh received a total salary of Rs 71 crore during the financial year 2021-22.
Within Parekh's total salary, there is a breakdown of components that include a base salary of Rs 6.67 crore, a performance-linked bonus amounting to Rs 18.73 crore, stock awards worth Rs 9.71 crore, and other benefits totaling 45 lakh.
Business Today reported that the decline in the CEO's overall salary can be attributed to several factors, such as reduced stock option exercises and alterations in Infosys' bonus structure.
In the previous year, Parekh's total salary encompassed stock options valued at Rs 52.33 crore, which were not exercised. Additionally, Infosys modified its bonus plan to have a stronger focus on performance, resulting in a lower bonus payout for the CEO.
Despite experiencing a 21 per cent reduction in salary, the CEO's earnings for the year remained significantly higher compared to the average employee. In the financial year 2022-23, the average total salary of an Infosys employee amounted to Rs 10.3 lakh.