Athira Sethu
Kochi, 18 April 2025
Infosys, India’s second-largest information technology firm, has chosen to offer stock-based compensation to its CEO and MD, Salil Parekh, of over Rs 51 crore. They are known as ESOPs, or Employee Stock Option Plans. These are offered as part of his employment contract and are based on the performance of the company.
The Infosys board made this decision after receiving recommendations from its Nomination and Remuneration Committee.
Here’s a basic explanation of the stock rewards:
Performance-Based Grant (Rs 34.75 crore)
Salil Parekh will receive Restricted Stock Units (RSUs) under the 2015 stock plan. The value of these shares amounts to Rs 34.75 crore. These will be paid to him after 12 months, provided some performance targets are achieved.
ESG Grant (Rs 2 crore)
Infosys will also award him RSUs of Rs 2 crore depending on the progress of the company in terms of the environment, social responsibility, and governance (ESG). These too will be awarded after 12 months if the company is successful in achieving its ESG targets.
TSR Grant (Rs 5 crore)
A further award of Rs 5 crore in RSUs will be provided, but after March 31, 2027. This is subject to Total Shareholder Return (TSR), which is the amount of profit investors earn on Infosys shares.
2019 Plan Grant (Rs 10 crore)
Infosys will provide a further Rs 10 crore worth of RSUs under its 2019 stock plan, again subject to the performance of the company. These will vest 12 months from the grant date.
Infosys stated that the number of shares actually awarded will be based on the share price on May 2, 2025, when the ESOPs will be formally granted.
The news was announced on Thursday, along with Infosys’ Q4 and full-year FY25 financial results.
