Infosys CEO Salil Parekh's Pay Rises to $8.7M Amid IT Slowdown

Key Takeaways

• Salil Parekh earned ₹826 million ($8.69 million) in FY26, with stock options accounting for ₹507.5 million
• His pay is 742 times the median Infosys employee salary, sparking debate about executive compensation
• Infosys forecasts 1.5% to 3.5% revenue growth for FY27 as AI disruption reshapes client spending

Stock Options Drive the Bulk of Parekh's Pay Package

Infosys CEO Salil Parekh took home ₹826 million ($8.69 million) in fiscal year 2026, a 2.5% increase from the previous year. The company disclosed the figures in its annual report released on Friday.

His compensation breaks down into three parts: a fixed salary of ₹79.7 million, bonuses worth ₹233.5 million, and stock options valued at ₹507.5 million. The stock options alone represent over 61% of his total pay.

In dollar terms, Parekh's earnings actually dropped from $9.44 million in FY25. The reason is straightforward: the Indian rupee fell 9.88% against the U.S. dollar during the year. In rupee terms, his compensation increased.

Parekh's Future at Infosys Remains Unclear

The annual report did not address whether Parekh's term as CEO would be extended. His current five-year stint ends in March 2026. He is already the longest-serving non-founder CEO in Infosys history.

Parekh joined Infosys in January 2018 after a long career at Capgemini. During his tenure, the company has navigated the pandemic-era digital transformation boom and the current AI-driven restructuring of client priorities.

How Parekh's Pay Compares to Rival CEOs

K Krithivasan, CEO of Tata Consultancy Services (Infosys's larger rival), earned $2.96 million for fiscal 2026. That's roughly one-third of Parekh's compensation.

HCLTech and Wipro have not yet released their annual reports for fiscal 2026, so their CEO compensation figures remain unknown.

India's IT Sector Faces AI Disruption Headwinds

Parekh's pay increase comes as India's $315 billion IT sector faces another year of slowing growth. AI-linked disruption is pushing clients to rethink their technology spending, with many pausing or restructuring outsourcing contracts.

Earlier this month, Indian IT stocks fell to their lowest point in three years after OpenAI announced a new services-led venture. The announcement spooked investors who worry that AI tools could reduce demand for traditional IT services.

For fiscal 2027, Infosys forecast revenue growth between 1.5% and 3.5% in constant currency terms. Analysts had expected a range of at least 2% to 4%. The company reported 3.1% revenue growth in fiscal 2026, meeting its own guidance of 3% to 3.5%.

The Pay Gap Debate Intensifies

Online discussions on Reddit's r/IndianStreetBets and Hacker News have focused on the 742x pay ratio between Parekh and the median Infosys employee. Critics argue that such gaps are hard to justify when the company's revenue growth outlook remains modest.

Some commenters noted that stock options drive most of Parekh's compensation, which ties his earnings to shareholder returns. Others pointed out that entry-level and mid-level salary hikes in the IT sector have remained relatively flat in recent years.

What to Watch Next

Infosys shareholders and industry watchers should keep an eye on three developments in the coming months. First, the board's decision on Parekh's contract extension will reveal their confidence in his leadership through the AI transition. Second, quarterly results will show whether the company can meet even its conservative FY27 guidance. Third, compensation disclosures from HCLTech and Wipro will provide more context for evaluating IT sector executive pay norms.

Frequently Asked Questions

How much did Infosys CEO Salil Parekh earn in FY26?

Salil Parekh earned ₹826 million ($8.69 million) in fiscal year 2026, a 2.5% increase from the previous year in rupee terms.

Why did Parekh's dollar earnings drop despite a pay raise?

The Indian rupee fell 9.88% against the U.S. dollar during the year, which reduced the dollar value of his compensation from $9.44 million in FY25 to $8.69 million in FY26.

How does Parekh's salary compare to TCS CEO's pay?

TCS CEO K Krithivasan earned $2.96 million in FY26, roughly one-third of Parekh's compensation.

When does Salil Parekh's current CEO term end?

Parekh's current five-year term ends in March 2026. The annual report did not disclose whether his contract would be extended.

What is Infosys's revenue growth forecast for FY27?

Infosys forecasts revenue growth between 1.5% and 3.5% in constant currency terms for fiscal year 2027, below analyst expectations of 2% to 4%.

Source: Tech-Economic Times / ET