Infosys sees crorepati employee count drop by over 50% in FY16
According to the report, the number of crorepati employees has fallen to 54 in 2015-16 from 113 in FY15
Even as news reports are abuzz with Infosys CEO Vishal Sikka taking home a whopping 752 percent increase in his salary last fiscal (FY16), the company's annual report also highlight the steep fall in number of crorepati employees.
According to the report, the number of crorepati employees has fallen to 54 in 2015-16 from 113 in FY15.
The sharp increase in crorepati count is mainly attributed to a one-time bonuses the company handed out to number of its executives in 2014-15. However, the company did not extend the bonus component and hence the fall in number of crorepati executives was on expected lines in last fiscal.
In fact, the number of crorepati employees is likely to come down further in 2016-17 due to six employees leaving the company last year, according to the company's annual report.
Among the notable names to quit Infosys last year was former chief financial officer Rajiv Bansal, who took home a salary of over Rs 10 crore in FY16.
Nearly 70 employees, who earned over Rs 60 lakh last year, also quit Infosys in FY16, NDTV report said.
Meanwhile , Infosys CEO Vishal Sikka has taken home Rs 48.7 crore ($7.45 million) salary in 2015-16. This includes basic salary variable pay of $4.33 million and RSUs (restricted stock units) granted to him that's valued at $2 million.
"During fiscal 2016, Sikka was granted RSU (Restricted Stock Units) valued at $2 million on the grant date. The RSUs will vest over a period of four years from the date of grant," the annual report said, adding he was also granted 1.24 lakh stock options in 2015-16.
From April 1, 2016, he will get a base salary of $1 million annually plus $3 million of variable pay. He will also get $2 million worth of stock annually and another $5 million worth of performance-based equity and stock options upon achievement of certain performance targets.
"Should Sikka fail to achieve minimum performance targets, his remuneration as proposed will fall to $3 million annually, consisting of $1 million base salary and $2 million of time-based RSUs." the annual report said.
"If Sikkas performance targets are exceeded, the performance-based payments for variable components of this compensation (variable pay and performance equity) will be capped at 150 per cent of the target compensation for such variable components," the report said. Infosys reported a rise in net profit by 1.9 percent in 2015-16 to $2.05 billion while revenues grew 9.1 percent to $9.5 billion. Sikka is eyeing revenue of $20 billion by 2020, more than double of $9.5 billion sale in 2015-16.
Once an industry bellwether, Infosys lost out to rivals like TCS and HCL Technologies in terms of growth. Besides, it faced other issues like attrition and exodus of senior-level executives.
With PTI inputs
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