Salil Parekh may earn up to Rs 35 crore a year in Infosys

Infosys’ new chief executive and managing director Salil Parekh may potentially earn up to Rs 34.45 crore a year given he achieves his targets set by the management.

This means he can earn more than $5 million factoring in all stock-based and main salary and that is nearly half of what Vishal Sikka was offered.

The second non-founder chief executive, after Vishal Sikka, of the IT services major has been offered Rs 18.25 crore through multiple stock-based compensation linked to performance.


Parekh's main salary is Rs 16.25 crore including Rs 9.75 crore which may vary based on performance.

As part of the stock compensation Parekh is offered Rs 9.75 crore as one-time equity benefit for his five-year tenure and that arrives at roughly Rs 2 crore in equity a year, said a corporate governance analyst.

This apart, annual equity grant and performance equity grant put together the new CEO is eligible for Rs 16.25 crore.

These three stock-based components can however be exercised at varied intervals of his tenure at India's second largest software exporter, added the analyst.

To be sure, the Rs 34.45 crore annual income will accrue to Salil Parekh provided he can meet his targets set by the board, and he also stays with the company for the full 5-year term he has been appointed for.

Notwithstanding the fact that only about one-fourth of Parekh’s salary is fixed, a large chunk of variable including stock benefits could also fetch him a higher compensation compared with his counterparts in other Indian IT firms such as Wipro.