Prime Highlights

• Infosys CEO Salil Parekh awarded ESOPs worth ₹50+ crore as Q4 FY25 profit fell 12%.
• Awards consist of performance-linked units of stock with linkages to ESG and shareholder returns.

Key Facts

• Infosys recorded ₹7,033 crore net profit in Q4 FY25, down 11.8% YoY.
• Parekh was awarded RSUs under the Plan for 2015, the grant of which was linked to performance and creation of long-term value.

Key Background

Infosys, India’s second-largest IT services firm, reported a fourth-quarter FY25 net profit of ₹7,033 crore, 11.8% lower than in the corresponding quarter of the previous fiscal. The revenue was ₹37,923 crore, with minimal expansion and recording sustained client conservatism, particularly in North America. The decline was blamed by the company leadership on macroeconomic uncertainty, contract ramp-downs, and lengthening deal conversion cycles.

In spite of the muted performance, the company awarded significant Employee Stock Ownership Plans (ESOPs) valued at ₹51.75 crore to CEO Salil Parekh. The ESOP grant comprises ₹34.75 crore as Annual Performance Equity Grant, ₹2 crore in the form of the ESG grant, and ₹5 crore in the Total Shareholder Return (TSR) grant. These are a part of Infosys’s 2015 equity plan and are performance-linked, vesting in three-four years.

The performance-linked RSUs are not prepayment but are tied to achieving some goals in company performance, ESG goals, and shareholder return. The step strengthens the Infosys’s long-term focus on leadership continuity, business resilience, and value creation in strategy even amidst pressure to profit short term.

Salil Parekh’s pay model has never been about pay-against-business-perform and potential for growth in the future. Infosys will still balance between cost management and talent retention amid a changing technology environment and changed client needs. The board move of granting high-value ESOPs reflects confidence in Parekh’s leadership and vision for growth, notwithstanding short-term decline in profitability.

Overall, Infosys remains focused on digital transformation opportunities, big-ticket wins, and long-term value creation through performance-driven leadership incentives.

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