Infosys reappoints Salil Parekh as CEO and Managing Director for the next 5 years
IT services major Infosys announced in a regulatory filing on Sunday the reappointment of Salil Parekh as the company’s CEO and managing director for a five-year term. Parekh will be the only non-founding CEO to manage to lead the company for a second term.
The company in its filing said the company’s board of directors, on the recommendation of the Nomination and Remuneration Committee (NRC), reappointed Parekh as the company’s Chief Executive Officer and Chief Executive Officer from July 1, 2022 to July 31. March 2027, subject to shareholder approval.
The company also announced that to ensure continuity and commitment from the organization’s leadership to drive the growth journey over the next few years, NRC has approved an award of 104,000 shares to six key executives and 375,760 other shares to 88 other senior executives. organisation.
These Performance Share Units (“PSUs”) will be granted under Infosys’ Expanded Stock Ownership Plan 2019 and will vest over three years upon the achievement of certain milestones, in accordance with the plan approved by shareholders.
Infosys under Parekh
Since Parekh joined in 2018, the business has grown steadily. For fiscal 22, the company reported revenue of $16.3 billion, which increased 19.7% year-over-year, one of its highest growth rates. raised in a decade. In Indian rupee terms, the company’s revenue for the financial year was Rs 121,641 crore, up 21.1% year-on-year.
The renewal of Parekh is important because it gives the necessary continuity at the highest level. Especially if you look at his predecessor, Vishal Sikka, who was considered a tech visionary and had to step down over corporate governance and other issues. He too had come from the good books of the founder.
Compared to Sikka, Parekh is the low-key, no-nonsense CEO who has focused on execution and returning growth metrics such as big deal momentum, cloud and digital growth.
This also comes from his vast experience. Prior to joining Infosys, he was a member of the Group Executive Board of Capgemini, where he held several management positions for 25 years.
Also unlike Sikka, Parekh has managed to work closely with the founders, especially Nandan Nilekani, President of Infosys, to create a roadmap for the company that puts it on par with its global peers and also to strengthen its presence in digital transformation agreements.
When Parekh took over the CEO role, during his first analyst meeting, he said he was rolling out a new strategic plan – Agile Digital Business, Energize the core, rekilling and localization – for the company that will transform the company within three years and he managed to do that. The company is back to win big contracts. From a total TCV of $3 billion in fiscal 2018, the company is now looking for a more sustainable $2-2.5 billion TCV as TCV per quarter.