Bengaluru: IT services major Infosys has approved performance-based stock incentives worth ₹51.75 crore for its Chief Executive Officer and Managing Director Salil Parekh.
According to a regulatory filing with the BSE, the incentives will be granted in the form of Restricted Stock Units (RSUs) and performance-based equity grants, linked to the achievement of targets set by the company’s board.
Breakdown of incentive structure
The company stated that Parekh will receive annual performance-based stock incentives valued at ₹34.75 crore under its 2015 Stock Incentive Compensation Plan. These RSUs will vest after 12 months, subject to the fulfilment of specified performance criteria.
In addition to this, the CEO will be granted:
- An Annual Performance Equity ESG Grant worth ₹2 crore
- An Annual Performance Equity TSR Grant valued at ₹5 crore
- A 2019 Annual Performance Equity Grant worth ₹10 crore
Together, these components take the total incentive value to ₹51.75 crore.
Grant details and vesting conditions
Infosys said the RSUs will be granted with effect from May 2, 2026. The exact number of units will be determined based on the market price at the close of the trading day preceding the grant date.
The vesting of these incentives is contingent upon meeting performance benchmarks, ensuring alignment between executive compensation and company performance.
Employee stock grants also approved
Alongside the CEO’s incentives, the board approved the grant of 27,193 RSUs to eligible employees under the 2015 plan.
Additionally, performance stock units (PSUs) worth ₹1.90 crore will be granted to employees under the 2019 plan. Similar to the CEO’s RSUs, the number of units will be calculated based on prevailing market prices.
These measures are part of the company’s broader strategy to retain talent and incentivise performance across levels.
Shares decline amid weak outlook
Meanwhile, shares of Infosys witnessed a sharp decline on Friday. The stock fell 7.09 per cent to close at ₹1,154.45 on the BSE.
The company’s market capitalisation dropped by ₹35,746.38 crore, bringing its total valuation down to ₹4,68,201.44 crore.
Revenue guidance disappoints investors
The decline in share price follows weaker-than-expected revenue growth guidance for FY27. According to a report by JM Financial Institutional Securities Limited, Infosys’ fourth-quarter FY26 revenue and margins fell short of market expectations.
The subdued outlook has raised concerns among investors regarding near-term growth prospects in the IT services sector.
Conclusion
While Infosys has approved substantial performance-linked incentives for its CEO and employees, the sharp fall in its share price reflects investor concerns over future growth. The coming quarters will be crucial in determining whether the company can meet its performance targets and regain market confidence.