Infosys board clears Rs 51.75 crore ESOPs for Salil Parekh; no call yet on employee salary hikes

Infosys has sanctioned stock incentives totaling approximately Rs 51.75 crore for its CEO and Managing Director, Salil Parekh. This decision comes as the company has yet to determine salary increases for its employees for the current fiscal year. The board, on April 23, endorsed these stock grants based on recommendations from the Nomination and Remuneration Committee. The incentives will be distributed in the form of performance-linked restricted stock units (RSUs) aligned with the company’s existing compensation structure. The most substantial portion of this grant is an annual performance equity award amounting to Rs 34.75 crore, which will vest after one year, contingent upon meeting specific performance targets established by the board. Additionally, Parekh will receive Rs 2 crore in RSUs tied to environmental, social, and governance (ESG) objectives, and Rs 5 crore related to cumulative relative total shareholder return (TSR) over a two-year span. Furthermore, a total of Rs 10 crore in performance-based equity has been authorized under the Infosys Expanded Stock Ownership Program-2019, also subject to defined performance criteria. The company highlighted that the annual performance-based stock incentives will vest after 12 months, contingent upon achieving set targets. The ESG-linked RSUs will similarly vest based on the company’s attainment of specified ESG milestones. The TSR-linked component is expected to vest on or after March 31, 2027, depending on the company’s performance over the two-year period. All RSUs will take effect from May 2, 2026, with the number of units to be determined based on market pricing prior to the grant date. This latest round of stock incentives arrives during a period of cautiousness regarding employee compensation, with Infosys still deliberating on wage hikes for FY27, including both timing and the amount. In its recent quarterly results, reported on March 23, Infosys showcased a robust performance for the March quarter, with a net profit increase of 20.87% year-on-year, reaching Rs 8,501 crore in Q4 FY26, up from Rs 7,033 crore during the same time last year. Revenue from operations rose by 13.38% year-on-year to Rs 46,402 crore, reflecting consistent business momentum. However, total expenses also saw a rise of 13.28%, amounting to Rs 36,764 crore in the March 2025 quarter, compared to Rs 32,452 crore the previous year.