Infosys Awards ₹52 Crore in ESOPs to CEO Parekh, Wage Hike for Employees Remains Undecided

Infosys Approves Stock Incentives Worth Rs 52 Crore for CEO Salil Parekh

Infosys has approved stock incentives worth approximately Rs 52 crore for its chief executive officer and managing director, Salil Parekh. The grants, which are part of Parekh's annual performance-linked compensation structure, were approved by the board based on recommendations from the Nomination and Remuneration Committee.

The IT major reported a 27.8 percent quarter-on-quarter rise in net profit at Rs 8,501 crore, with revenue for the March quarter coming in at Rs 46,402 crore, a 2 percent sequential rise. The stock incentives are structured across multiple performance-linked plans, including Rs 34.75 crore under the annual performance equity grant, Rs 2 crore linked to ESG targets, Rs 5 crore tied to total shareholder return (TSR), and Rs 10 crore under the 2019 performance plan. In total, the grants amount to approximately Rs 51.75 crore and will vest over a period of one to two years, subject to performance conditions and milestones set by the board.

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The restricted stock units (RSUs) will be granted effective May 2, with the number of units determined based on the market price prior to the grant date. The grant is broadly in line with the previous year, when Infosys awarded stock incentives worth approximately Rs 50 crore to Parekh under similar performance-linked plans.

Infosys has not yet taken a call on wage hikes for this fiscal, with both the timing and quantum still under review, according to chief financial officer Jayesh Sanghrajka. The delay comes as the IT services sector continues to operate in a low-growth environment, with discretionary spending still under pressure and deal ramp-ups taking longer. Infosys has guided for 1.5 percent to 3.5 percent revenue growth for FY27, signaling continued caution even as deal pipelines remain steady.

The company's cautious approach to costs, including compensation, is a result of the challenging business environment. However, Infosys continues to invest in priority areas such as AI and digital capabilities. The ESOP grants to Parekh are part of a structured annual compensation framework and include performance-linked components tied to financial, ESG, and shareholder return metrics. The company had followed a similar structure in the previous year as well, with stock incentives forming a significant portion of executive pay.