Infosys has approved stock incentives worth nearly Rs 52 crore for its CEO and Managing Director Salil Parekh, even as a decision on employee salary hikes for the current financial year remains undecided.
The equity grant, approved by the company’s board following internal committee recommendations, is part of the CEO’s performance-linked compensation. The structure includes multiple components tied to annual performance, shareholder returns, ESG goals, and a long-term incentive plan.
The stock units are scheduled to vest over one to two years, subject to the achievement of specific performance conditions, with allocation linked to market price at the time of grant.
The latest payout broadly aligns with the previous year’s compensation structure, indicating continuity in how the company links leadership rewards to performance metrics.
The approval comes after a quarter that showed steady financial performance.
In contrast, the company has yet to take a call on employee wage revisions for FY27. Management has indicated that both the timing and scale of salary hikes are still under evaluation. The delay reflects a cautious approach as the sector continues to navigate slower deal ramp-ups and constrained discretionary spending.
Infosys has projected modest revenue growth for the year, signalling a measured outlook. Like many IT firms, it is balancing cost control with investments in emerging areas such as artificial intelligence (AI) and digital transformation.
The divergence between executive compensation and pending wage decisions highlights the industry’s current focus on margin protection while awaiting clearer signs of demand recovery.
