Days before Diwali, Infosys has announced a massive incentive program, which will benefit 6949 eligible employees.
And, at the same time, Infosys CEO will receive incentives of Rs 10 crore worth of stocks.
Since Infosys CEO Salil Parekh is under fire for sharing false numbers to boost growth statistics, and for calling racial slurs, this stock based incentive does sounds offbeat.
Infosys’ Massive Incentive Program Announced
Infosys has informed the stock exchange that they will giving incentives to 6949 mid-level employees, via restricted stock units (RSU).
Total of 2,298,020 stock incentives will be distributed among these eligible employees.
While informing the stock exchanges, Infosys said, “This is to inform that 2,298,020 stock incentives in the form of RSUs were granted to 6,949 mid-level eligible employees of the company/subsidiary companies under the 2015 Stock Incentive Compensation Plan,”
In the month of April, Infosys approved incentive plan for all employees, which will be based on stock options. Total of 5 crore shares have been allocated for this incentive program.
What Are Restricted Stock Units (RSU)
Restricted Stock Units or RSUs are stock based compensation, for present employees. RSUs are normally provided when the employee has achieved a given target, or spends a specific amount of time.
Although RSUs are company stocks, but they have some terms and conditions attached: For instance, the value of RSUs is intangible, unless it’s vested. And ‘vesting’ has different definitions as per company policies.
The monetary benefits after selling or vesting RSUs is considered an income, and the same income is used to pay income tax as well.
As per Infosys statement, the RSUs will be applicable effective November 1st, and can be vested in 4 equal installments.
CEO Will Get Rs 10 Crore Incentive
As part of this incentive program, Infosys CEO Salil Parekh will be granted stocks worth Rs 10 crore.
This has raised some eyebrows, since Infosys is conducting a private audit of the decisions made by the CEO and CFO Nilanjan Roy after some whistleblowers accused them of sharing false numbers to show more profits and revenue.
CEO has also been accused of using racial terms for their Board Members.
Infosys CEO can be fired, if the allegations are found to be true.
We will keep you updated, as more details come in.
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