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Infosys has approved stock incentives worth about Rs 52 crore for its chief executive officer and managing director, Salil Parekh
Infosys CEO Salil Parekh (Image: PTI/Sailendra Bhojak)
Salil Parekh Salary: Infosys has approved stock incentives worth about Rs 52 crore for its chief executive officer and managing director, Salil Parekh. The grant, cleared by the board following recommendations from the Nomination and Remuneration Committee, forms part of Parekh’s annual performance-linked compensation structure, the company said in an exchange filing dated April 23.
Q4 Performance Remains Strong
The announcement comes alongside a steady quarterly performance. Infosys reported a 27.8% quarter-on-quarter rise in net profit to Rs 8,501 crore, while revenue for the March quarter stood at Rs 46,402 crore, up 2% sequentially and largely in line with Street expectations.
Breakdown of ESOP Grant Structure
The stock incentives are distributed across multiple performance-linked 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 ESG targets, Rs 5 crore tied to total shareholder return (TSR), and Rs 10 crore under the 2019 performance plan.
In total, the grant amounts to approximately Rs 51.75 crore and will vest over one to two years, subject to the achievement of performance milestones set by the board. The RSUs will be granted effective May 2, with the final number of units determined based on the prevailing market price before the grant date.
Consistency in Executive Compensation
The latest grant is broadly in line with the previous year, when Infosys had awarded stock incentives worth around Rs 50 crore to Parekh under a similar structure. This indicates continuity in the company’s executive compensation policy, with a significant portion of pay linked to performance metrics.
Wage Hike Decision Still Pending
Even as executive compensation remains structured and consistent, the company has yet to take a call on employee wage hikes for the current fiscal. Chief Financial Officer Jayesh Sanghrajka said during the post-earnings conference that both the timing and quantum of salary revisions are still under review.
Cautious Industry Backdrop
The delay in wage decisions reflects broader industry trends, as the IT services sector continues to face a low-growth environment. Discretionary spending remains under pressure, and deal ramp-ups are taking longer than expected.
Infosys has guided for revenue growth of 1.5% to 3.5% for FY27, signalling a cautious near-term outlook even as deal pipelines remain stable. This environment has led companies to adopt a calibrated approach to costs, including compensation, while continuing to invest in strategic areas such as artificial intelligence and digital capabilities.
Annual Grants Continue as Per Policy
The ESOP allocation to Parekh is part of a structured annual compensation framework that links rewards to financial performance, ESG goals, and shareholder returns. The latest grant reinforces the company’s continued focus on performance-linked executive pay, even as broader employee-related decisions remain under evaluation.
April 24, 2026, 3:02 pm IST
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