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| The pay shift in Infosys, which is occurring under Vishal Sikka, is logical in the time of professional managers. Infosys pic |
May 16, 2016, NewsCrunch
The pay disparity between the bottom rungs and higher ups in Infosys under CEO Vishal Sikka seems to be increasing.
And Sikka is personally leading the new trend.
The average salary of an Infosys employee is between Rs 5.16 lakh and Rs 4.89 lakh.
This is about 116 times less than the salary Sikka draws - $4.56 million excluding stock options and RSUs, reports the Times of India.
If you add them, Sikka's compensation shoots up to $ 11 million, though it is not clear the time period over which the entire amount would accrue to him.
The salaries of other top Infosys employees — Sandeep Dadlani, head of Americas, Ravi Kumar, chief delivery officer and Mohit Joshi, head of financial services -- have also risen to touch a new high of 2 million including stocks and long-term incentives.
Management experts recommend that the ratio of wage disparity across hierarchy should be kept to a minimum. Narayana Murthy had advocated a disparity ratio of 20 to 25%.
That number was possible during the era of Infosys founder-CEOs who took low salaries and sky high dividends, thanks to their stakes.
The shift in Infosys, which is occurring now, is logical in the time of professional managers.
The CEO and average wage ratio of 116 in Infosys still compares well with TCS (416) and Wipro (169).