Infosys: Infosys top executives granted stock units
The stocks were granted on February 27 and the exercise price will be the par value of the shares. Parekh was granted a one-time 84,768 RSUs, worth Rs 9.75 crore (based on the Feb 27 price), for a period of over two years, and an annual performance equity grant of 28,256 RSUs worth Rs 3.25 crore over a period of three years. Infosys had said it will pay Parekh Rs 32.5 crore (approximately $5.12 million) in annual compensation. That’s significantly lower than the $11 million that former CEO Vishal Sikka was eligible to.
Ranganath, Kumar and Joshi received 66,850 RSUs each, worth about Rs 7.7 crore, with a four-year vesting period. Krishnamurthy Shankar, head- HR, was granted 12,400 RSUs, AGS Manikantha, company secretary, got 2,000 RSUs, and other eligible employees received 16,02,510 RSUs. All of these vest over four years.
Dan Marcec, director, content & communications at compensation research firm Equilar, said RSUs are the most common type of equity grants among CEOs in the US. According to Equilar data, stock represented 49.4% of total compensation on average for CEOs of the 500 largest US companies by revenue. In most cases, those grants are tied to performance goals. “Nearly two-thirds of CEOs at the companies Equilar studied in 2016 received more than half of their total equity packages in performance-based awards,” Marcec said.
Infosys’s grant is part of the 2015 incentive compensation plan designed to attract, retain and motivate talented and critical employees, and to reward employee performance with ownership in proportion to their contribution.