Infosys links CEO Sikka's pay to company's Rs 1.33 lakh crore target

In an attempt to reiterate that its goal of becoming a $20 billion (Rs 1.33 lakh crore) firm is a target and not just an aspiration, software giant Infosys has its linked its chief executive, Vishal Sikka's annual compensation to the progress the company towards the goal, the chairman of its board said.

Sikka had earlier announced that the company has set a target of becoming a $20 billion firm with average revenue per employee of $80,000 and an opening margin of 30%, reported Mint. As of March 2016, Infosys had a $9.5 billion revenue, and $50,700 full time equivalent (that is, the revenue generated per employee working on a project) and an operating margin of 25%.

“There is nothing aspirational in this (long-term goal). This is a target which the company is looking at, (and) is pursuing,” R Seshasayee, non-executive chairman of Infosys, was quoted in the aforementioned Mint report.

"The (CEO’s) compensation is linked to targets which are publicly given. There is a trajectory for this. The compensation is linked to that trajectory,” Seshasayee added.

This means, now on, Sikka's annual compensation of $11 million (around Rs 73 crore), which includes a fixed salary of $3 million (around Rs 19 crore) and $8 million (around Rs 53 crore) under the variable component will be dependable on the company's progress to achieve its target.

Infosys Technologies Limited