The rise in compensation was mainly due to Parekh exercising a greater number of restricted stock units (RSUs) — a type of equity compensation — throughout the year. He generated ₹49.5 crore from stock options in FY25, up from ₹39 crore in the prior fiscal year. His base salary remained stable at ₹7.5 crore, while retirement benefits were noted at ₹50 lakh. Variable pay increased to ₹23.2 crore, compared to ₹19.8 crore from the previous year.
Infosys offers RSUs under two different schemes. The 2015 scheme primarily vests shares based on tenure, while the 2019 plan is performance-based, relating to total shareholder returns and key operational metrics.
In a letter to shareholders, he highlighted that Infosys has established itself as a leader in sectors such as artificial intelligence, cloud computing, data management, and digital transformation.
“With our extensive expertise in AI, cloud, data, digital, and cost-efficiency solutions, we have become the preferred partner for major enterprises globally,” he mentioned.
He also stated that the company recruited 15,000 recent graduates in the past year, ending FY25 with a workforce exceeding 3.2 lakh.
On April 17, 2025, Infosys granted Parekh employee stock options valued at approximately ₹50 crore for the fiscal year. This grant incorporates annual performance-based RSUs across various plans, including equity and ESG-linked incentives.
Salary hike amid market strain
The significant increase in Parekh’s remuneration occurs during a period when Infosys is confronting a tough market landscape. The company has reduced variable pay, laid off hundreds of trainees at its Mysuru location, and continues to experience broader uncertainties in the global tech services sector.
In his letter, Parekh recognized the contributions of employees to the company’s achievements: “Their dedication and ongoing commitment to excellence have facilitated sustained value creation for our clients.”
He characterized FY25 as another year of robust performance for the IT giant based in Bengaluru.
First Published: Jun 2, 2025 5:30 PM IST
