Infosys grants ESOPs worth ₹50 crore to CEO Salil Parekh in FY2025

Infosys has approved employee stock option plans (ESOPs) worth around ₹50 crore for its Chief Executive Officer and Managing Director Salil Parekh for the financial year 2025, the company revealed in a regulatory filing following its board meeting on Thursday, April 17.

The stock grants, which will be issued in the form of restricted stock units (RSUs), are part of Parekh's employment agreement approved by shareholders.

RSUs are a form of equity compensation, offering employees the right to receive company shares upon meeting certain conditions, typically linked to tenure or performance milestones.

The company’s board, acting on the recommendations of the Nomination and Remuneration Committee, cleared four separate performance-based RSU grants for Parekh under the company’s 2015 and 2019 equity incentive plans.

The largest component of the grant is a performance-based equity award valued at ₹34.75 crore, which will vest 12 months from the date of grant, subject to achievement of performance targets set by the board.

Another grant, pegged at ₹2 crore, is linked to Infosys achieving certain environmental, social and governance (ESG) milestones over the same period.

A third grant, valued at ₹5 crore, will vest on or after March 31, 2027, and is tied to the company’s cumulative relative total shareholder return (TSR) over a two-year period.

The board also approved a grant worth ₹10 crore under the Infosys Expanded Stock Ownership Program 2019. This award, too, will vest after 12 months based on specific performance criteria outlined in the plan.

All of these RSUs will be formally granted on May 2, 2025, and the number of shares allocated will be calculated based on the closing market price on that day.

The board has also approved the allotment of 5,000 RSUs to eligible employees under the 2015 plan, which will vest equally over four years.