Infosys grants ₹52 crore ESOPs to CEO Salil Parekh under performance plan.
Employee salary hike decision for FY27 remains under internal company review.
ESOPs linked to shareholder returns, ESG metrics, and market performance benchmarks.
Infosys Clears ₹52 Cr ESOPs for CEO, Employee Salary Hikes Still Unclear
Infosys approves ₹52 crore ESOPs for CEO while employee salary hikes remain pending
Infosys headquarters in Bengaluru as company announces CEO ESOP grants and pending employee hikes
Summary
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Infosys has approved stock incentives worth about ₹52 crore for chief executive officer and managing director Salil Parekh, reported The Economic Times.
The grants, approved by the board based on recommendations of the Nomination and Remuneration Committee, are part of Parekh’s annual performance-linked compensation structure, the IT major said in an exchange filing on April 23.
Infosys reported a 27.8 percent quarter-on-quarter rise in net profit at Rs 8,501 crore. Revenue for the March quarter came in at Rs 46,402 crore, rising 2 percent sequentially, broadly in line with expectations.
Why CEO Gets ESOPs
ESOP grants to CEO 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.
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The latest grant shows continuity in executive compensation even as broader employee-related decisions remain under review.
Understanding Infosys ESOPs
ESOPs are Employee Stock Ownership Plans that enable employees to own a small part of the company through shares in addition to the salaries they get. The employees are also given the option to buy company shares at a fixed price or sometimes receive them as a reward. The shares become valuable when the company performs well.
ESOPs in Infosys are a performance-linked ownership reward system, where employees gradually earn company shares that grow in value over time.
The ESOP scheme has been relaunched based on the performance, with grants tied to total shareholder return and benchmarked to market performance. Infosys has also converted the options to restricted stock units which are given at face value and are linked to the market price.
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Why Salary Hikes Delayed
According to Moneycontrol, salary hikes are still pending in Infosys as the company has not taken any final decision on employee salary hikes for FY27, even as executive compensation has been approved.
The delay in salary hikes is because Infosys says the timing and quantum of the wage hikes is under review. The move comes at a time of cautious IT demand, with overall growth remaining slow and uncertain.