Salil Parekh, the CEO of Infosys, has become the second-highest paid chief executive in the Indian IT sector for the fiscal year 2024, with an annual compensation of Rs 66.25 crore. This figure is derived from the company’s annual report, which highlights his remuneration following Wipro’s former CEO Thierry Delaporte, who earned $20 million (approximately Rs 166 crore).
In FY23, Parekh’s compensation had decreased to Rs 56 crore from Rs 71 crore in FY22. The significant increase in FY24 was mainly due to the higher number of restricted stock units (RSUs) he exercised during the year. RSUs are a type of equity compensation provided to employees, and Infosys offers these based on two plans: the 2015 plan awards stocks primarily based on tenure, while the 2019 plan bases the benefits on performance indicators such as total shareholder returns and the company’s operating metrics.
Parekh’s total compensation for FY24 included a base salary of Rs 7 crore, retiral benefits amounting to Rs 47 lakh, and a variable pay or bonus of Rs 7.47 crore. Additionally, he earned Rs 39.03 crore from exercising his RSUs. In his letter to shareholders, Parekh emphasized that Infosys’ focused execution during FY24 led to growth and resilience in operating margins. The company generated $2.9 billion in free cash flow and secured $17.7 billion in large deals, reflecting the relevance of their service offerings to clients. Over the past five years, Infosys has returned 85% of its free cash flow, amounting to $2.3 billion, to shareholders as part of its capital allocation policy.
Infosys also made significant strides in recruitment and employee training during FY24, hiring nearly 11,900 college graduates and concluding the year with over 317,000 employees. The company’s attrition rate dropped to 12.6%, and more than 250,000 employees were trained in AI skills. Gender diversity remained a key focus, with women making up about 39% of the workforce.
In comparison, Tata Consultancy Services (TCS) CEO K Krithivasan earned Rs 25.36 crore in FY24, the lowest among the top IT companies. Wipro’s new CEO, Srinivas Pallia, is set to receive a remuneration package of approximately Rs 50 crore in FY25.
