Infosys has released its annual report for the financial year 2022-23. And, the remuneration of its key managerial professionals (KMPs) approved by board for the fiscal, shows a reduction of 21 percent in total compensation for its MD & CEO Salil Parekh.

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For the year 2022-23, Salil Parekh will receive a total remuneration of Rs 57.32 crore against Rs 71.02 crore in the previous year. This comes after a few weeks of Wipro Chairman Rishad Premji, seeing a fall of nearly 50 percent in his total compensation.

This reduction is mainly on account of less number of restricted stock units being exercised. In FY23, restricted stock units contribute Rs 30.60 crore against Rs 52.33 crore in the previous year to the total compensation. A restricted stock unit (RSU) is an award of stock shares, usually given as a form of employee compensation. The recipient must meet certain conditions before the restricted stock units are transferred to the owner. Restricted stock units are issued to employees through a vesting plan and distribution schedule after they achieve required performance milestones or upon remaining with their employer for a particular length of time.

In the list of top 10 employees in terms of remuneration drawn during the year, Mohit Joshi, who resigned from Infosys in March this year to join Tech Mahindra as MD & CEO, is the one with highest compensation of Rs 57.32 crore. It included Rs 38.95 crore on account of exercise of 92,475 RSUs & 2.25 lakh ESOPs under the 2015 Plan & 27,333 under the 2019 Plan.

Meanwhile, Nandan Nilekani, who has been Non-Executive Chairman of the company since mid-2017, voluntarily chose not to take any remuneration for his services rendered to the company.

While discussing financial performance, it is important to address the company's earnings for the March-ending quarter. Infosys reported a decline of over 3 percent in constant currency revenue, surpassing the previous decline witnessed during the pandemic. This outcome led to a missed annual guidance for the first time in six years, which subsequently impacted the performance of Infosys' share price.

Shares of Infosys have been one of the biggest underperformers in 2023 year-to-date. It is down 13 percent against a rise of nearly 3 percent in the sectoral Index, Nifty IT.