Infosys on Sunday said it has re-appointed Salil Parekh as the managing director and CEO of the company for five years.
Parekh has been leading Infosys since January 2018.
In a regulatory filing on Sunday, the country’s second- largest IT services firm said its board has approved a proposal to re-appoint Parekh as CEO and MD from July 1, 2022 to March 31, 2027, subject to the approval of shareholders.
Parekh had donned the mantle of Infosys chief from January 2, 2018, following the resignation of Vishal Sikka on August 18, 2017 after a spat with the founders particularly N.R. Narayana Murthy over corporate governance issues. Since his arrival at Infosys, the Bangalore-based firm has charted a higher growth path.
Infosys’ revenues rose to $16.3 billion in 2021-22 from $10.93 billion in 2017-18, even as the total contract value (TCV) rose to $ 9.5 billion from $ 3 billion in the same period.
The company has guided for revenue growth of 13-15 per cent in constant currency for 2022-23, and back in 2017-18, it had guided for 6-8 per cent revenue growth.
Revenues from digital services has risen from 25.5 per cent of the total revenues to over 57 per cent of the total revenues in 2021-22.
Before joining Infosys, Parekh was a member of the group executive board at Capgemini, where he held several leadership positions for 25 years. He was also a partner at Ernst & Young and is widely credited for bringing scale and value to the Indian operations of the consultancy firm.
While the IT sector has seen strong growth particularly since the pandemic, Parekh and others are facing the challenge of high employee attrition, leading to concerns of wage inflation as the company looks to retain good talent. Infosys had said that during the first quarter, it will raise compensation for both its offshore and onsite employees.
Stock grants
Infosys said the nomination and remuneration committee has approved a grant of 104,000 shares to six key managerial personnel and another 375,760 shares to 88 other senior executives of the organisation.
The performance stock units (PSUs) will vest over three years on the achievement of certain milestones. The date of the grant for the PSU shall be June 1, 2022.
