Infosys_Compensation_Philosophy_in detail.pptx

Infosys compensation in detail

1. Compensation Philosophy of Infosys How Infosys designs pay, rewards & executive compensation Prepared by: Vaibhav Mali Date: October 2025

2. What is Compensation Philosophy? • A formal statement that defines how and why a company pays employees in a certain way. • Outlines values like fairness, performance, and competitiveness. • Aligns pay with business goals and ensures retention and motivation.

3. Infosys – Key Principles • Compassionate Capitalism – Reducing salary gap between top and bottom levels (N.R. Narayana Murthy). • Performance & Long-Term Value – Pay linked to KPIs and stock incentives. • Governance & Transparency – Nomination & Remuneration Committee ensures fair and transparent practices.

4. Executive Compensation Structure Infosys compensation components: 1. Base / Fixed Pay – Market-aligned cash salary. 2. Performance Bonus – Based on company and individual KPIs. 3. Stock Incentives – RSUs and stock options vested over years.

5. Evaluation & Rewards • NaRC sets goals and evaluates based on KPI achievement. • Bonus and stock grants depend on performance. • Stock vesting ensures long-term alignment with company success.

6. Leadership Philosophy – N.R. Narayana Murthy • Advocates reducing compensation disparities. • Encourages restraint in senior management pay raises. • Prioritizes welfare of junior employees before executive bonuses.

7. Challenges & Debates • Balancing competitive executive pay and fairness. • Public criticism over large executive pay hikes. • Maintaining transparency and trust among employees.

8. Conclusion Infosys’ compensation philosophy balances: • Market competitiveness • Performance orientation • Long-term value • Fairness Goal: Align employee rewards with organizational success while maintaining equity and transparency.