Whopping Infosys pay hike

Nearly 300 executives in the $8.2 billion infotech services company are expected to see substantial salary increases

While Infosys founder NR Narayana Murthy has been revered for austerity, the infotech major recently brought about a phenomenal uplift to the industry’s salary benchmark, making its top executives virtually poach- proof by even international rival companies. The salaries of vice presidents in the company have undergone a three- to five-fold hike, now putting them in the bracket of Rs 6 crore.

The move comes immediately after the company board appointed Vishal Sikka as its CEO and MD. Sikka was previously working with the multinational software giant SAP and was brought in to revive the company’s dipping fortunes in the infotech industry. The hikes are being seen as indicators of Sikka’s efforts to stem exits from the company and bring in talent from SAP as well. Following the hike, at least five top-level executives and some former SAP appointments have been pushed into the Rs 6 crore category.

Sikka, incidentally, already happens to be the highest paid CEO of an Indian company, with his annual salary of about Rs 30 crore. His pay packet includes a base salary of $900,000 and variable pay of $4.18 million. As per estimates made within the industry, nearly 300 executives in the $8.2 billion infotech services company are expected to see a substantial increase in their salaries.

Infosys is poised to retain its position among the world’s top infotech companies after witnessing some unfortunate years—attributed to the policy of having its founders lead the company. It required Murthy to emerge from retirement and make drastic course corrections. But now the company has shown that it is willing to pay to keep talent that it feels is essential to its growth.

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