With stock options and global benchmarks, the compensation of CEOs of listed Indian IT service firms is far higher than that of their counterparts in other industries
Over the last five years CEOs of Indian IT firms have seen a large bump in their compensation. This large increase hasn’t been the norm across sectors an analysis by Forbes India shows.
The reason for this jump has been two-fold. First is the liberal grant of stock options, which are often in the form of restricted stock units (RSUs). These usually have a vesting price of Rs1-5 and are certain to vest after a fixed time period. Salil Parekh of Infosys received a part of his compensation in the form of RSUs.