Skyrocketing pay packages of senior executives usually lift eyebrows in the industry and spark concern among shareholder advisory firms. But amazingly, this time around, these firms are batting for Infosys MD and CEO Vishal Sikka’s over $7 million package, which is not only one of the highest in India but also akin to that of his global peers.
Infosys will pay Sikka, who replaces S D Shibulal, up to $5.08 million in annual salary besides stock options worth $2 million. Proxy firms believe that Infosys, which been hit by several top-level exits over the past few months, needs to “invest in talent”, and put in place a team that can frame the company’s vision for the future” and so shareholders should vote for his appointment and salary.
India’s second-largest software services exporter has called for an unusual general meeting of its shareholders on July 30 at Bangalore to approve the appointment of Sikka as the new CEO, and his annual remuneration at a maximum of $7.08 million (Rs.42.48 crore).
Recently, institutional investors and public shareholders in Tata Motors had rejected the proposal on the remuneration of three top executives.
“Infosys’ decision to appoint Sikka must be looked at as an investment in its leadership that will bear returns in the future. Sure enough, one may question the potential return ratios ? but you must first invest,” Amit Tandon, co-founder of Institutional Investor Advisory Services (IiAS), a proxy firm, told TOI.