Infosys CEO Vishal Sikka Draws Rs 43 crore Salary In FY Year 2016-2017April 15, 2017 17:24
Infosys CEO Vishal Sikka, has drawn a salary of USD 6.68 million (about Rs 43 crore or or 61% of the promised compensation for the financial year (FY) 2016-17.
The CEO’s pay package was one of the disputes raised by the founders of the company. He was eligible for a USD 11 million pay, that includes basic salary, variable pay, restricted stock units (RSUs) and performance stock options for the year. In the previous financial year, Sikka drew Rs 48.73 crore, as his salary, much higher than this year.
According to Infosys financial statements, the CEO received only USD 3.68 million of the USD 8 million variable component that he was promised. Sikka took home, USD 0.82 million in variable pay, USD 1.9 million in RSUs and Employee Stock Ownership Plan (ESOPs) worth USD 0.96 million, totaling USD 3.68 million, and is considered as one of the highest paid executives in the Indian IT industry. His salary, with effect from April 2016, was revised from USD 7.08 million to USD 11 million package, a move that did not go down well with the founders, including Mr. NR Narayana Murthy.
The USD 11 million package was to include a base salary of USD 1 million and USD 2 million worth of stock annually as well USD 3 million in variable pay. Additionally, Sikka is also eligible for another USD 5 million worth of performance-based equity and stock options, upon achievement of certain performance targets.
Infosys said, “The Board, upon the recommendations of the Nominations Committee, on April 13, 2017, approved, USD 0.82 million as a variable pay to CEO for the year ended March 31, 2017.”
While the founders had raised concerns, over the significant salary hike given to Sikka, the Board, on its part, maintained that the variable component was tied to precipitate performance goals. However, Infosys has not made those goals public. The company, further defended Sikka's pay hike saying all decisions were made in the overall interests of the company.
The Bengaluru-based firm, which achieved a revenue of USD 10.2 billion in 2016-17, has been focusing on new areas like automation and artificial intelligence to bolster its revenues to meet the said target.
The company, expects its revenue to increase by 6.1-8.1% in USD terms, for the financial year, 2017-2018.