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Truth about Vishal Sikka’s salary

Source | LinkedIn : By Adwait Bhave

There are multiple media reports circulating about Infosys CEO Dr. Vishal Sikka’s salary. Some of the reports showing this as one of the reasons for the founder’s activism. In this post, I’ll collect published data about Dr. Sikka’s salary from the years 2010 to 2016, and investigate if there has been any disproportionate increase in his compensation during last year.

Analyzing CxO level compensation is not easy as it contains many components, some not disclosed clearly in annual reports. And then there is an additional complexity of stock options. For this analysis, I’ll consider available information in the annual reports about actual salary paid and stock options granted during the period.

Sikka’s Compensation (2015-2016)

First, let’s see how the famous 48.73 Cr. number, salary paid for the year 15-16 became widespread. Below is the actual snippet of the annual report and a graphic showing the composition of 48.73 Cr.

Breaking down this 48.73 Cr into components

  1. Dr. Sikka joined Infosys on 14 June 2014 and he served only for 9 months in FY 14-15. During this period, there was no variable component paid.
  2. The variable pay from FY 14-15 was paid as part of salary in FY 15-16. Hence, in next section of this analysis, I’ll consider this as part of 2014 salary.

Dr. Sikka’s compensation trend

The table above shows Dr. Sikka’s record of compensation from 2010-2011 to 2015-2016. SAP reports the executive compensation in Euro while Infosys reports it in Indian Rupee. As Dr. Sikka is a citizen of United States, I’m going to use annual average conversion rate for converting all the records in US dollar. All the salary figures in the table are in USD million.

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