Mumbai, June 5: Infosys CEO Salil Parekh's total compensation fell by 21 per cent to Rs 56.44 crore (US$ 7.3 million) in the fiscal year 2022-23, according to the company's annual report.

Parekh's salary is down from Rs 71 crore (US$ 9.3 million) in the previous year. His base salary was Rs 6.67 crore (US$ 870,000), while his performance-linked bonus was Rs 18.73 crore (US$ 2.4 million). AI Responsible for Layoffs? About 4,000 Employees in US Lost Their Jobs in May 2023 Due to Artificial Intelligence, Says Report.

Infosys had earlier slashed the average variable pay of its employees by 40 per cent for the quarter that ended on March 2023.  The average Infosys employee's total salary is Rs 10.3 lakh in 2022-23.

The decline in Parekh's compensation comes amid a broader slowdown in the Indian IT industry.  Infosys' board of directors' decision to cut Parekh's compensation is said to be taken in view of the company's performance.

The new pay cut will likely be seen as a positive move by investors. It shows that the company's board of directors is willing to take steps to reduce costs, even if it means cutting the pay of its top executives.

Alongside lower stock option exercises, there has been a change in Infosys' bonus plan.  Parekh's total salary included Rs 52.33 crore worth of stock options before.

In a recent email to employees, the tech company stated the employees need to stay alert about the changes in the market and 'must see the current climate as an opportunity to rally as a group and remain committed to navigating the changing business landscape'.

“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events,” the email added. ZoomInfo Layoffs: US-Based Marketing Tech Firm To Lay Off 3% of Its Workforce Globally.

Parekh has been the CEO of Infosys since 2014. He is one of the highest-paid CEOs in India. In 2022, he was ranked 12th on the list of highest-paid CEOs in India by the Economic Times.

(The above story first appeared on LatestLY on Jun 05, 2023 11:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).