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Infosys Hikes CEO Salil Parekh’s Salary by 22% for FY25 — Here’s What’s Behind the ₹80.6 Crore Package Infosys CEO Salil Parekh is set to take home a
Infosys CEO Salil Parekh is set to take home a significantly larger paycheck for the financial year 2024–25, with total compensation jumping 22% to ₹80.6 crore, according to the company’s latest regulatory disclosures. The increase comes largely due to the exercise of a substantial number of stock options granted to him under long-term incentive plans.
Parekh, who has led the IT giant since 2018, continues to enjoy strong support from Infosys’ board, which has recommended his reappointment for another term following a positive performance evaluation.
The ₹80.6 crore compensation for FY25 represents a significant increase over the previous year, where his total pay stood at approximately ₹66 crore.
Here’s how the ₹80.6 crore breaks down:
| Component | FY25 Amount (₹ crore) | FY24 Amount (₹ crore) |
|---|---|---|
| Base Salary | ₹7.45 | ~₹7.45 (unchanged) |
| Variable Pay & Incentives | ₹23.18 | ₹19.75 |
| Stock Options Exercised | ₹49.5 | Substantial rise |
| Retiral Benefits | ₹0.49 | Similar |
| Total Compensation | ₹80.6 crore | ₹66 crore (approx) |
The most significant factor behind Parekh’s 22% salary increase is the exercise of stock options—a common feature in executive compensation, especially for CEOs of publicly listed companies.
It’s important to note that, under India’s Income Tax Act, only stock options that are actually exercised during the financial year are included in reported annual remuneration. This excludes any RSUs that remain unexercised or are subject to future vesting conditions.
RSUs are a form of equity compensation where an employee is granted company shares, typically subject to vesting over time or based on performance milestones.
Once vested and exercised, they convert into shares that the employee can either sell or retain. For high-level executives, RSUs often form the bulk of potential long-term earnings.
According to Infosys’ annual report, Salil Parekh was granted 3,82,071 new RSUs in FY25 under the company’s long-term incentive framework. These will vest over time, further aligning his interests with those of the shareholders.
As of now, Parekh holds 11,85,548 shares in Infosys, a significant personal stake that reinforces his role as a long-term strategic leader within the company.
Infosys also confirmed that Parekh’s current term as CEO and MD will end on March 31, 2027. However, he is scheduled to retire and offer himself for reappointment at the upcoming Annual General Meeting (AGM), a procedural requirement under corporate governance norms.
The Infosys board, after conducting a formal performance evaluation and considering the recommendations of the Nomination and Remuneration Committee (NRC), has endorsed his reappointment.
This signals strong confidence in his leadership amid the volatile global IT services landscape.
Salil Parekh took over as CEO in January 2018, during a time of significant transition for Infosys. Since then, he has:
His leadership has been largely well-received by shareholders and analysts alike, with Infosys being viewed as a stable performer in India’s tech sector.
Parekh’s rising compensation—especially the heavy reliance on performance-linked stock grants—mirrors a broader shift in how top tech executives are paid.
Rather than bloated base salaries, companies are increasingly tying CEO wealth creation to stock performance and long-term company goals. This incentivizes leaders to focus on sustainable growth and shareholder value.
In Parekh’s case, the substantial RSUs exercised this year indicate that previous grants have matured and met their performance conditions, highlighting a degree of executional success under his watch.
As of now, there has been no public investor backlash regarding Parekh’s pay hike. Infosys’ governance structure includes detailed compensation disclosures and performance linkage, reducing the risk of shareholder dissent.
That said, with global tech companies tightening spending and markets facing macro uncertainty, FY25 may bring fresh challenges. Infosys’ continued performance—and Parekh’s leadership—will remain under scrutiny as the company seeks to defend its market share in cloud, AI, cybersecurity, and digital services.
Salil Parekh’s ₹80.6 crore compensation for FY25 underscores the evolving landscape of CEO pay in India’s corporate world, where stock-based rewards are now central to aligning executive performance with shareholder interests.
Backed by the board and poised for reappointment, Parekh continues to be a pivotal figure at Infosys as it navigates a new era of technology services, digital transformation, and global competition.
The real test will lie in how Infosys continues to deliver growth amid challenging times—and how that performance is reflected in future stock-based payouts for its top executive.
