In a significant development that reflects both confidence in leadership and the growing scale of India’s IT services industry, Infosys CEO Salil Parekh’s annual compensation for the financial year 2024-25 (FY25) has been increased by 22%, bringing his total salary to ₹80.6 crore per annum. This move has sparked interest across corporate circles, the stock market, and among the general public, drawing attention not only for its size but also for what it says about the direction of one of India’s most prominent IT firms.
A Reward for Steady Leadership
Salil Parekh took over the reins of Infosys in January 2018, a time when the company was navigating through internal challenges and growing global competition. Since then, he has overseen a period of stable leadership, strategic transformation, and significant revenue growth. Under his guidance, Infosys has increasingly shifted towards digital transformation services, cloud computing, AI integration, and enterprise modernization projects — key areas for global clients.
Parekh’s latest salary hike appears to be a reward for these achievements and a strategic move by the board to retain a high-performing executive at a time when leadership continuity is critical. With a 22% jump in compensation, Parekh joins the elite league of India’s highest-paid CEOs, not just in tech, but across sectors.
Breaking Down the ₹80.6 Crore Package
While the headline figure of ₹80.6 crore may seem staggering, CEO compensation typically includes several components beyond just base salary. This likely includes:
Fixed salary and benefits
Performance-linked incentives
Stock options and restricted stock units (RSUs)
Long-term bonuses tied to strategic targets
Retirement and deferred compensation
A significant portion of Parekh’s pay is likely to be in the form of equity, aligning his interests with long-term shareholder value creation. Infosys, being a publicly traded company, needs to disclose its executive compensation in its annual reports, ensuring transparency.
Public Reactions: A Mixed Bag
As is often the case with high executive pay announcements, public reactions have been divided. Supporters argue that Parekh’s leadership has helped Infosys retain its position as one of the top IT services firms globally, competing effectively with rivals like TCS, Wipro, and Accenture. Infosys has also seen continued growth in large deal wins, improved operating margins, and robust stock performance under his tenure.
Critics, however, point to the vast income gap in India and raise questions about income inequality and fair compensation. They argue that while top executives receive crores in salary, entry-level and mid-level employees are often subject to tighter salary bands and fewer benefits.
The Global Context of CEO Compensation
In a global context, Indian CEO pay — even at the high end — remains competitive but still relatively modest compared to Western tech giants. For example, CEOs of U.S.-based tech firms like Apple, Microsoft, and Alphabet often receive compensation packages that exceed hundreds of millions of dollars, particularly when stock options are considered.
That said, the ₹80.6 crore package puts Parekh in a very elite class within India and signals that Infosys is willing to pay top dollar to attract and retain leadership that can compete on the world stage.
Market Reaction and Shareholder Sentiment
Infosys shareholders have generally responded positively to the company’s performance under Parekh. While stock prices can fluctuate due to global macroeconomic factors, Infosys has maintained investor trust, with consistent dividends and share buybacks. Parekh’s leadership has been widely seen as steady, strategic, and focused on long-term growth — a key reason why shareholders may view the salary hike as justified.
Moreover, at a time when talent — especially at the leadership level — is scarce and global competition is fierce, competitive compensation helps prevent poaching and leadership attrition, which can negatively impact both stock performance and internal morale.
The Bigger Picture: Infosys and India’s IT Landscape
This development also speaks to the evolution of India’s IT services industry. Gone are the days when Indian IT was merely a cost-effective outsourcing partner. Today, companies like Infosys are strategic digital transformation consultants to Fortune 500 clients. This shift justifies a more global standard for executive pay, reflecting the value being delivered to global clients and shareholders.
Furthermore, with emerging technologies like generative AI, blockchain, quantum computing, and cybersecurity becoming critical areas of growth, having experienced leadership at the helm is more important than ever. Infosys appears to be betting that Salil Parekh is the right person to steer the company through these technological shifts and geopolitical uncertainties.
Conclusion: A Bold Signal
Infosys’s decision to hike CEO Salil Parekh’s salary to over ₹80 crore is more than just a headline-grabbing move — it’s a bold signal about the company’s confidence in its leadership, its strategic direction, and its place in the evolving global tech landscape. As Infosys continues to grow and innovate, this investment in leadership could very well pay rich dividends in the years to come.
While it may reignite the debate about income disparity and executive pay, there’s no doubt that Parekh’s role in Infosys’s continued transformation is being recognized in a manner that aligns with global standards. Whether this sets a new benchmark for executive pay in India remains to be seen — but it certainly marks a new chapter in corporate India’s evolution.
