Infosys to pay new CEO $5.08 mn annually

Infosys Ltd will annually pay its new chief executive and managing director Vishal Sikka a whopping $5.08 million (around Rs.30 crore) and stock options (equity shares) equivalent to $2 million, when he joins the company Aug 1.

In a regulatory filing to the stock exchanges Wednesday, the software major said the 47-year-old Sikka will also be on the company's board as a whole-time director from June 14, 2014 to June 13, 2019.

The company has convened an extraordinary general meeting (EGM) July 30 here to seek the approval of shareholders of the special resolution appointing Sikka as the CEO and MD from Aug 1, 2014 to June 13, 2019, as per the Companies Act.

"The total compensation to Sikka will include an annual base salary of $900,000 and a variable pay of $4.18 million each fiscal year," the company said in its notification to the shareholders.

Sikka will also be entitled to other employee benefits as specified in the resolution.

The EGM will also consider two other resolutions seeking the re-appointment of K.V. Kamath and R. Seshasayee as independent directors.

As the former executive board member of the German software product major SAP AG, the US-based Sikka is the first outsider chief executive of the $8.3-billion Infosys, replacing its last co-founder incumbent S.D. Shibulal, who demits office July 31.