Infosys CEO Salil Parekh: The Second Highest-Paid CEO in the Indian IT Industry

With a focus on driving growth, embracing generative AI, and leading transformative projects, Salil Parekh has solidified his reputation as a stalwart in the IT industry. His leadership continues to propel Infosys forward, ensuring its position as a global technology leader.

MUMBAI (India CSR): Salil Parekh’s fixed salary for FY24 stood at Rs 7.47 crore, an increase from Rs 7.12 crore in FY23. This steady rise in his basic salary underscores the value Infosys places on his leadership and strategic vision.

Bonus Component

The bonus component of Parekh’s compensation reached Rs 19.75 crore in FY24, up from Rs 18.73 crore in the previous fiscal year. This bonus is a testament to the company’s strong performance under his guidance and the successful execution of key initiatives.

Stock Incentives

One of the most notable aspects of Parekh’s compensation package is the substantial stock incentives. In FY24, he exercised 2,58,636 restricted stock units, amounting to Rs 39.03 crore. These stock incentives align his interests with those of the shareholders, incentivizing long-term growth and stability for Infosys.

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Second Highest-Paid CEO in the Indian IT Industry

With a total compensation of Rs 66.2 crore, Salil Parekh has become the second highest-paid CEO in the Indian IT industry. He is only surpassed by Wipro’s former CEO Thierry Delaporte, who earned Rs 166 crore in FY24. This ranking highlights Parekh’s esteemed position within the industry and the high regard in which he is held.

Impact on Infosys

Under Parekh’s leadership, Infosys has continued to flourish, embracing innovative technologies and driving significant growth. His compensation package reflects his critical role in steering the company towards new opportunities and navigating the challenges of a rapidly evolving market.

Infosys CEO and MD Salil Parekh saw his annual compensation rise by 17% to Rs 66.25 crore in FY24, according to the company’s annual report. This makes him the second highest-paid CEO in the Indian IT sector, following Wipro’s former CEO Thierry Delaporte, who earned Rs 166 crore in the same fiscal year.

Comparison to Employee Salaries

Parekh’s compensation is 677 times the average salary of an Infosys employee. The average annual salary increase for employees in India was 9%, with the median remuneration (MRE) of employees rising to Rs 9,77,868 in FY24 from Rs 9,00,012 in FY23.

Fluctuations in Salary

In FY22, Parekh received Rs 71.02 crore, but his salary dropped 21% to Rs 56.44 crore in FY23 as he exercised fewer Restricted Stock Units (RSUs) compared to the previous fiscal year. His FY24 remuneration includes Rs 39.03 crore from the exercise of 2,58,636 RSUs under the 2015 Plan and 32,447 RSUs under the 2019 Plan.

Here is a table summarizing the key facts:

Chairman’s Voluntary Decision

Chairman and non-executive, non-independent director Nandan M. Nilekani voluntarily chose not to receive any compensation for his services. In the annual report, Nilekani highlighted the transformative potential of the Gen AI revolution. He noted that the shifting technological landscape would open up significant opportunities, with a resurgence of custom-built solutions incorporating new AI building blocks.

AI Application Compliance

Nilekani emphasized that global companies must ensure their AI applications comply with regulations in every country. He explained that while applications might be tested on large models, actual deployment would involve narrow transformers trained on relevant enterprise data, ensuring security and efficiency.

CEO’s Message to Shareholders

In his message to shareholders, Salil Parekh shared that Infosys is collaborating on multiple projects with clients to leverage generative AI. These initiatives span software engineering, process optimization, customer support, advisory services, and sales and marketing.

Compensation 677 Times the Average Salary

Infosys CEO and MD Salil Parekh’s pay was 677 times the average salary of an Infosys employee. The average annual salary increase for employees in India was 9%, and the median remuneration of employees rose to Rs 9,77,868 in FY24 from Rs 9,00,012 in FY23.

Key Facts

(India CSR)