The increase in the compensation paid to the top executives during the quarter ended December 31, 2018, has hit the operating margins of IT major Infosys.
The company’s operating margins during the quarter ended 110 basis points lower at 22.6% -- lowest in the past 10 quarters.
Despite rupee depreciation positively impacting the company’s operating margins by 0.46%, the company attributed the decline to revaluation of Skava, new investments and increase in the compensation paid out. The increase in the compensation to key managerial persons (KMPs) has hit the IT major's revenues by 40 basis points.
During the quarter Nomination and Remuneration Committee of the company approved grant of annual Restricted Stock Units (RSUs) having a value of Rs 3.25 crores to Salil Parekh, Chief Executive Officer and Managing Director. This is in accordance with the terms of his appointment as approved by the shareholders.
The company also granted 68,250 RSUs to UB Pravin Rao, Chief Operating Officer and Whole-time Director, based on his performance in fiscal 2018.
The company revised of compensation of Key Management Personnel with effect from October 1, 2018. The executives who saw their compensation increase are: Mohit Joshi, Ravi Kumar S, Inderpreet Sawhney, Krishnamurthy Shankar, Jayesh Sanghrajka and AGS Manikantha. The revised aggregate compensation of these KMP includes fixed compensation of Rs 18.20 crore and target variable compensation of Rs 13.60 crore.
