124 employees get over `1-cr pay at Infosys
However, its CEO Salil Parekh’s remuneration for FY23 shrinks 21% to Rs56.45 cr from Rs71 cr in FY22.
image for illustrative purpose
Bengaluru Infosys paid over Rs1 crore of compensation to 124 employees in last financial year (2022-23), a marginal rise from 123 employees in FY22. This was disclosed by the Bengaluru-headquartered company in its 2022-23 annual report released recently.
During two years of pandemic, salaries of both senior management and mid-level employees have seen a rapid rise as IT firms gave promotions and salary hikes in regular frequency. Especially, performance-linked compensation has seen a sound jump as most IT firms posted good revenue and operating profit performance in FY22 and FY23.
Employees at the senior-level leadership included vice-presidents, and senior vice-presidents among others, who made up for the bulk of crorepatis. The remuneration includes fixed pay, variable pay, retrial benefits, and stock options.
Infosys posted industry leading revenue growth numbers in both these fiscal years. In FY23, revenue came at $18.2 billion, a rise of 15.4 per cent in constant currency term.
According to Infosys annual report, company’s chief executive officer (CEO) Salil Parekh’s compensation for the financial year 2022-23 (FY23) took a drop of 21 per cent at Rs56.45 crore, down from Rs71 crore in the previous year. Parekh received a base pay of Rs6.67 crore, retiral benefits of Rs45 lakh, and a variable pay of Rs18.73 crore.
This decrease seemed to be arising from the fewer exercise of restricted stock units (RSUs) by Parekh during the year. Importantly, remuneration of the CEO was 627 times higher than the median remuneration of Rs9 lakh received by the company’s employees during the last fiscal year.
According to the annual report, while median remuneration for junior employees stood at Rs3.6 lakh, it was around Rs11 lakh for mid-level staffers. For senior-level staffers, median salary was at Rs26.3 lakh during the last financial year.
Compensation of senior management including the Chief Executive Officers of Indian IT firms is likely to be adversely affected in the current financial year as performances of most large and many tier-II IT companies are expected to worsen as compared to last year.
Last month, IT firm Infosys cut the average variable pay out at an organisational level to 60 per cent for the fourth quarter of FY23. Similarly, Wipro rolled out a variable pay out of around 80 per cent for its employees during the fourth quarter.
On The Money
- V-Ps, sr V-Ps among others made up for bulk of crorepatis
- The remuneration includes fixed pay, variable pay, retrial benefits and stock options
- Median remuneration for jr employees at Rs3.6 lakh
- It was Rs11 lakh for mid-level staffers
- l For sr-level staffers, median salary was at Rs26.3 lakh
- l Sr management including CEOs adversely affected
