The hike in FY25 remuneration was primarily on account of 49.50 crore of 3,06,276 stock options (Restricted Stock Units or RSUs) exercised by Parekh under the 2015 plan and 39,141 RSUs under the 2019 plan during fiscal 2025.
His base salary stood at Rs 7.45 crore with Rs 49 lakh worth retiral benefits. The bonus/variable and variable pay accounted for Rs 23.18 crore
As per the Income-tax Act, 1961, only the value of stock incentives that were actually exercised during the period is included in the remuneration. Stock incentives that were granted but not exercised during the period are not counted.
Parekh, whose term has been extended until March 31, 2027 and who is liable to retire at the forthcoming Annual General Meeting, is eligible and has offered himself for reappointment, the report said. “Based on the performance evaluation and the recommendation of the Nomination and Remuneration Committee, the Board recommends his reappointment,” the report said.
The number of restricted stock units offered to him in FY25 stood at 3,82,071Parekh holds 11,85,548 shares in the company, the annual report said.Parekh was appointed CEO & MD on January 2, 2018 and reappointed on July 1, 2022.
The shareholders had approved the initial appointment and key terms of the agreement on February 20, 2018 and amended the terms of remuneration as per the resolution passed at the AGM dated June 22, 2019. Further, the shareholders approved the reappointment of Parekh including revised remuneration payable to him at the 41st AGM held on June 25, 2022.
Parekh has over three decades of global experience in the IT services industry with a strong track record of driving digital transformation for enterprises, executing business turnarounds and managing successful acquisitions.
He was also the Chairman of Capgemini’s North America Executive Council.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
By
