Infosys, one of India’s top IT companies, has granted stock options worth around Rs. 50 crore to its CEO and MD, Salil Parekh, for the financial year 2024–25. The stock awards are part of performance-linked incentives and come under various plans, including equity-based and ESG (Environmental, Social, and Governance) grants. These benefits are given in the form of Restricted Stock Units (RSUs).
The timeline for these stock options to vest meaning when they become fully available to the employee ranges between 12 to 24 months. However, this depends on meeting specific performance goals set by the company’s board.
Alongside this, Infosys has also offered 5,000 RSUs to certain employees. These will vest evenly over four years, and the cost to exercise them will be the face value of the company’s shares—making it a valuable long-term reward.
When it comes to paychecks, Salil Parekh was the second-highest-earning CEO in India’s IT sector for FY24, with a total compensation of Rs. 66.25 crore. The top spot went to Wipro’s former CEO, Thierry Delaporte, who took home around Rs. 166 crore (USD 20 million).
Parekh’s total payout in FY24 included a total fixed salary worth Rs. 7.47 crore and bonus incentives worth Rs. 19.75 crore. His perquisites on account of stock options exercised stood at about Rs. 39 crore.
Interestingly, Parekh’s earnings had dipped in FY23 to Rs. 56 crore, down from Rs. 71 crore in FY22. The bump in his latest earnings came mainly because he cashed in more stock options over the past year, according to Infosys’ annual report. RSUs, like the ones granted, are a way for companies to offer employees part-ownership in the firm, linking rewards to long-term company performance.
Salil has been part of Infosys as its CEO and Managing Director since January 2018. An alumnus of IIT Bombay, he completed his undergraduate degree in Aeronautical Engineering in 1986. Though he started off in the field of engineering, his career path soon took a turn toward technology.
Salil pursued a Master’s degree in both Computer Science and Mechanical Engineering from Cornell University in the US. Before taking over at Infosys, Salil built a solid reputation during his long stint at Capgemini, a global consulting and technology services firm. There, he held several leadership roles and played a key part in scaling their global delivery model.
Narayana Murthy’s grandson to earn Rs 3.3 crore from Infosys dividend
Ekagrah Rohan Murty, the 17-month-old grandson of Infosys co-founder Narayana Murthy, is already making headlines in the world of finance. The toddler is set to receive a dividend payout of Rs. 3.3 crore from Infosys for the financial year ending March 2025.
Ekagrah is the son of Rohan Murthy and Aparna Krishnan, and the grandson of Narayana and Sudha Murty. He owns 15 lakh shares in Infosys, making up a 0.04 per cent stake in the company. These shares were gifted to him by his grandfather when he was just four months old. At that time, the shares were worth over Rs. 240 crore.
Infosys recently announced a final dividend of Rs. 22 per share. Based on his 15 lakh shares, Ekagrah will earn Rs. 3.3 crore this year from dividends alone, pushing his total dividend earnings so far to Rs. 10.65 crore.
The Murthy family, known for their significant stake in Infosys, will collectively earn substantial amounts from this dividend payout. Akshata Murty, Narayana Murthy’s daughter and wife of UK Prime Minister Rishi Sunak, will receive Rs. 85.71 crore from her 3.89 lakh shares (1.04 per cent stake). Narayana Murthy himself will take home Rs. 33.3 crore, while his wife Sudha Murty will earn Rs. 76 crore.