Infy's Shibulal takes 26% pay cut in FY13

Infosys CEO and MD S D Shibulal took home a smaller bonus in the past financial year

S D Shibulal, the chief executive officer and managing director of Infosys, the country’s second largest information-technology company, took a pay cut of 26 per cent in financial year 2012-2013, primarily due to a cut in bonus/incentive pay. Shibulal, also one of the founders of the Bangalore-based company, took an annual salary of $119,774, compared to $162,990 in the previous year.

According to a filing by the company to the US Securities and Exchange Commission (SEC), the annual remuneration of Shibulal comprises salary of $66,311, a bonus component of $15,918, $22, 430 and $15,115 as other annual compensation and amount accrued for long term benefits respectively.

The Form 20-F filing by the company also shows a decline in the annual salary package of another co-founder and the executive co-chairman,

S Gopalakrishnan. Data filed to the SEC show  Gopalakrishnan’s salary for the year 2012-13 was $119,776. The company’s executive salary consists of four major components — salary, bonus/incentive, other annual compensation and amount accrued for long term benefits.

“Our Board aligned the compensation structure of our employee directors in line with that applicable to all of our other employees. All of our executive directors are entitled to a bonus of up to 20 per cent of their fixed salary. All of our executive directors are entitled to receive company-linked performance incentives payable on our achievement of certain financial performance targets. All our executive directors are entitled to receive individual performance-linked incentives,” the filing said.

Stephen Pratt, managing partner for the company’s worldwide consulting and systems integration business, stood as the highest paid executive in FY13. Pratt earned around $2.12 million ($2,12 9,785) as annual compensation including salary and bonus, while Ashok Vemuri, head of global manufacturing and engineering services businesses, earned an annual compensation of $904,378 which includes salary, bonus and other annual compensation.

All compensation to directors and officers paid in Indian rupees has been converted at an exchange rate of 54.29 a dollar. The company has a variable compensation structure for all of its employees, and each employee’s compensation consists of performance incentives payable upon the achievement by the company of certain financial performance targets and is also based on individual performance.

“The bonus and various incentives are payable quarterly or at other intervals as per decision of the Board,” Infosys said.

V Balakrishnan, the former chief financial officer of the company, also witnessed a decline in his annual pay package. Balakrishnan received $319,698 as annual pay including salary, bonus/incentive, other annual compensation and amount accrued for long term benefits.

Basab Pradhan, global sales head of the company, received a compensation of around of $505,960 in FY13, while other senior executives such as Chandrasekar Kakal, head of Infosys enterprise solution unit, received $268,933 as annual compensation, and Rajiv Bansal, the chief financial officer, received $59,572 as annual salary.