In a double bonanza for Infosys Chief Executive Salil Parekh, the software major's board on Monday approved granting stock options valued at Rs 23 crore as a reward for his performance and steering the company to new heights.
"The board approved the performance-based grant of restricted stock units (RSUs), amounting to Rs 13 crore for fiscal 2010-21 under the 2015 stock incentive compensation plan to Parekh," said the city-based IT major in a regulatory filing on the BSE.
The RSUs are in line with Parekh's employment agreement when he joined the outsourcing firm in January 2018 from the French IT major Capgemini.
The $12.8-billion firm's investors approved the grant through postal ballot on February 2018 and later at its annual general meeting on June 22, 2019.
"The stock will be granted from May 2 and the number of shares will be calculated based on the market price at the close of trading on May 2," said the filing.
The board also granted annual performance-based stock incentive to Parekh as equity shares with Rs 10 crore market value under the company's expanded stock ownership programme-2019.
The board approved granting annual performance-based stock incentives to Chief Operating Officer (COO) U.B. Pravin Rao as equity shares valued at Rs 4 crore under the 2019 plan.
This comes as Infosys said on Monday that it has suspended hiring, salary increments and promotions for the year. However, Infosys will honour all commitments made in terms of campus hires and laterals.
The IT major said that there will not be any COVID-related layoffs. However, COO Pravin Rao said that some of the involuntary actions the company has been taking in recent past will continue and these will all be performance-based exits.
The company also added that there will no be any furloughs, however the company is looking at many initiatives to bring cost under control.
Infosys suspended guidance on revenues and margins for FY21 due to uncertainty coming out of the COVID-19 pandemic. Infosys CEO Salil Parekh said that while there is no clear view on when a recovery can be expected, the company will provide guidance after visibility improves.