Parekh, the CEO & MD of Infosys since January 2018, has successfully led Infosys in the last 4 years
Bengaluru, NFAPost: IT services major Infosys in a regulatory filing announced the reappointment of Salil Parekh as the CEO and MD of the company for the period of five years. Parekh will be the only non-founder CEO to have managed to be at the helm of the company for a second term.
The company in its filing said that the Board of Directors of the company on the recommendation of the Nomination and Remuneration Committee (NRC) have reappointment Parekh as Chief Executive Officer and Managing Director of the company from July 1, 2022 to March 31, 2027, subject to the approval of shareholders.
The company also announced that to ensure continuity and commitment of the leadership of the organisation for driving the growth journey over the next few years, the NRC has approved a grant of 104,000 shares to six key management personnels and another 375,760 shares to 88 other senior executives of the organization.
These Performance Stock Units (‘PSU’s’) will be granted under the Infosys Expanded Stock Ownership Plan 2019, and will vest over three years on the achievement of certain milestones, in line with the plan approved by shareholders.
Infosys under Parekh
Since Parekh came on board in 2018, the company has been growing steadily. For FY22, the company reported revenue of $16.3 billion, which grew 19.7 per cent year-on-year, one of its highest growth rate in a decade. In Indian rupee the company’s revenue for the fiscal came in at Rs 121,641 crore up 21.1 per cent yoy.
Parekh’s reappointment is significant as this gives the much needed continuity at the top level. Especially if one looks at his predecessor, Vishal Sikka, who was considered to be a tech visionary, and had to resign on corporate governance and other issues. He also had fallen out of the founder’s good books.
Compared to Sikka, Parekh is the no-nonsense, understated CEO who has focused on execution and on getting back growth parameters like large deals momentum, cloud and digital growth into focus.
This also comes from his vast experience. Before joining Infosys he was a member of the Group Executive Board at Capgemini, where he held several leadership positions for 25 years.
Also unlike Sikka, Parekh has managed to work closely with founders, especially Nandan Nilekani, chairman Infosys in creating a roadmap for the company which brings it at par with global peers and also in ramping up its presence in the digital transformation deals.
When Parekh took over the CEO’s role, in his first analyst meet stated that he is rolling out a new strategic plan– Agile Digital Business, Energise the core, reskilling and localization– for the company which will transform the company within three years and he managed to do that. The company is back to winning large deals. From a total TCV of $3 billion for FY18, the company is now looking for a more sustainable $2-2.5 billion as its TCV per quarter.
