Infosys Ltd. is planning to give incentives worth Rs 10 crore to its Chief Executive Officer Salil Parekh as part of its annual stock ownership programme for employees.
The board of the software services provider has approved granting restricted stock units to Parekh to “incentivise him to increase shareholder value and to drive execution excellence of the agreed business strategy”, the company said in an exchange filing. The stocks will be vested 12 months from the date of the grant.
Parekh's terms of appointment, too, have been tweaked by changing the vesting period of the annual equity grant to one year from three years earlier.
Parekh, who joined from Capgemini last year, has steadied the rocking ship and improved client confidence in India's second-largest software services provider. Despite headwinds to operating margin from currency fluctuation, higher cost and global uncertainties, Infosys reported steady revenue growth and strong client additions in the previous financial year.
The chief executive officer, when appointed in January 2018, was to draw an annual salary of up to Rs 18.6 crore, including the variable component.
Chief Operating Officer and Whole-Time Director UB Praving Rao has also been awarded restricted stock units worth Rs 4 crore.
Besides, Infosys expanded its stock ownership programme and the board has proposed to allocate 5 crore shares, about 1.15 percent of the company's equity, to a broad base of employees which will be linked to their performance.
“Our employees are our biggest asset, and through this programme we aim to recognise and reward individuals who are committed to driving value creation for all stakeholders through their continued and consistent performance,” Parekh said in the media statement. “By making employees owners, they get an opportunity to be beneficiaries in the long-term success of the company and realise the results of their work and dedication.”
The proposals are subject to shareholders' approval.
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