Infosys has approved stock-based incentives worth Rs 51.75 crore for its CEO and Managing Director Salil Parekh, even as the company is yet to decide on salary hikes for its employees.
The ESOP grants were cleared by the board on April 23 following recommendations from the Nomination and Remuneration Committee.
The awards will be issued as Restricted Stock Units (RSUs) under the company’s employee stock plans and will take effect from May 2, 2026.
DETAILS OF THE ESOP GRANT
The total ESOP package is split across multiple components, with the largest portion linked to performance.
- A performance-linked equity grant of Rs 34.75 crore under the 2015 Stock Incentive Compensation Plan, which will vest after 12 months subject to targets set by the board
- An ESG-linked grant of Rs 2 crore under the same plan
- A total shareholder return-linked award of Rs 5 crore, which will vest no earlier than March 31, 2027
- A Rs 10 crore grant under the Infosys Expanded Stock Ownership Program 2019
Most of these RSUs will vest after 12 months, depending on performance conditions. The final number of units will be calculated based on the closing market price on the trading day prior to the grant date.
STRONG RESULTS BACK ESOP MOVE
The ESOP approval comes after a strong quarterly performance by the company.
Infosys reported a 20.9% rise in net profit to Rs 8,501 crore in the March quarter, while revenue grew 13.4%.
The company has guided for constant currency revenue growth of 1.5% to 3.5% for FY27 and plans to hire around 20,000 freshers, broadly in line with its hiring in FY26.
WAGE HIKE DECISION STILL PENDING
While the leadership’s stock incentives have been finalised, the timeline for employee salary hikes remains uncertain.
CFO Jayesh Sanghrajka said the company has not yet taken a decision on either the timing or the quantum of annual wage revisions.
This means employees are still waiting for clarity on pay increases, even as the company moves ahead with equity-based rewards for its top leadership.
The development highlights a contrast in how compensation decisions are being rolled out, with leadership incentives being locked in while broader employee pay revisions remain undecided.
For investors, the ESOP structure ties leadership compensation to performance and shareholder returns. For employees, however, the focus remains on when salary hikes will be announced.