Just like every other tech giant Infosys is also in cost-cutting mode. Recently the company fired all the freshers who couldn’t clear an internal test. The company also slashed the average variable pay of its employees. Not only that but the CEO of the company, Salil Parekh, also got a reduction in his total salary. Here’s everything you need to know about it.
Infosys CEO Salary Cut
According to a report from Business Today, Infosys CEO Salil Parekh got a 21% salary cut for the financial year 2022-23. The company’s annual report revealed CEO Salil Parekh earned Rs 56.44 crore in the financial year 2022-23, reflecting a decrease compared to the previous year’s earnings. In the financial year 2021-22, Parekh received a total salary of Rs 71 crore. Parekh’s overall compensation consists of a base salary of Rs 6.67 crore, a performance-linked bonus of Rs 18.73 crore, stock awards worth 9.71 crores, and additional benefits of 45 lakhs.
The report further claims that the CEO’s total salary decline can be attributed to multiple factors, such as decreased stock option exercises and a revised bonus plan at Infosys. In the previous year, Parekh’s total salary comprised Rs 52.33 crore worth of unexercised stock options. Additionally, Infosys implemented a more performance-based bonus structure, reducing the CEO’s bonus.
Also Read: Noise Achieves Milestone of Manufacturing Over One Million Smartwatches in India
Infosys Implements Variable Pay Reduction for Employees
Infosys Reduces Average Variable Pay for Employees by 40% in Q1 2023. As a result, employees can expect to receive only 60% of their promised variable pay. In an email sent to employees, as mentioned in a Moneycontrol report, the company acknowledged that while the financial year 2022-2023 had an overall strong performance, the last quarter was adversely affected by a volatile market and unforeseen events.
The email emphasized the importance of staying vigilant regarding market changes and viewing the current climate as an opportunity to unite as a team and remain dedicated to navigating the evolving business landscape. Additionally, Infosys assured its employees that the organization has consistently demonstrated resilience, effectively responding to market disruptions and striving to forge ahead.