Infosys grants stock incentives to CEO Salil Parekh worth Rs 3.25 crore

Bengaluru-based IT Services major Infosys has granted stock options worth Rs 3.25 crore to CEO Salil Parekh under the 2015 Incentive Compensation Plan, the company has said in a regulatory filing.

The incentive has been offered in the form of Restricted Stock Units (RSUs) and has a three-year equal vesting schedule. The date of grant of these units is February 27, the company informed the exchanges.

According to the filing, COO UB Pravin Rao has got 58,680 RSUs. Meanwhile, five key managerial personnel (KMPs) will receive stock incentives of 3,53,270 RSUs, which stands at about Rs 1.75 crore per person under the 2015 plan.

371 eligible employees have been granted 14,87,150 RSUs under the same scheme. These shares will have a four-year equal vesting period.

In April last year, the Infosys board had approved a performance-based stock ownership programme for employees.

Under the plan, It had decided to allocate 50 million shares to employees based on performance. The grants allocated to employees over a period of seven years will vest based on challenging performance criteria of relative Total Shareholder Return (TSR) against an industry peer group; relative TSR against domestic and global indices, and operating lead performance metrics, it had said.

The new plan is different from Infosys’ 2015 plan. Under the 2015 plan, the grants were largely vested based on time, whereas under the 2019 plan, the grants will vest strictly on performance, the company claimed in an exchange filing in May.

As per the Expanded Stock Ownership Programme 2019, six KMPs will receive 1,69,000 Performance Stock Units(PSUs) and close to 411 eligible employees will receive 17,76,500 PSUs. These shares will have three-year equal vesting and will be subject to the achievement of annual performance parameters as defined in the 2019 Plan, the filing added.