The reappointment of the CEO and MD of the company for the period of five years was announced by IT services major in a regulatory filing on Sunday. Parekh will be the only non-founder CEO to have managed to hold the helm of the company for a second term.
The Board of Directors of the company will be reappointed by Parekh as the Chief Executive Officer and Managing Director of the company, subject to the approval of shareholders, on the recommendation of the Nomination and Remuneration Committee NRC.
The NRC has approved a grant of 104,000 shares to six key management personnel and another 375,760 shares for 88 other senior executives of the organization to ensure continuity and commitment to the leadership of the organisation over the next few years.
These Performance Stock Units PSU s will be granted under the Expanded Stock Ownership Plan 2019, and will vest over three years on the achievement of certain milestones, in line with the plan approved by shareholders.
Since Parekh came on board in 2018, the company has been growing steadily. Revenue for FY 22 was $16.3 billion, one of its highest growth rates in a decade, grew 19.7 per cent year-on-year. The company's revenue for the fiscal came in at Rs 121,641 crore, up 21.1 per cent yoy.
Parekh s reappointment is important as it gives continuity at the top level. When one looks at his predecessor, Vishal Sikka, who was considered to be a tech visionary, he had to resign on corporate governance and other issues. He had fallen out of the founder's good books.
Parekh is the CEO who is focused on execution and is on getting back growth parameters like large deals momentum, cloud and digital growth, compared to Sikka.
He has vast experience and this comes from his vast experience. Before joining Infosys he was a member of the Group Executive Board at Capgemini, where he held several leadership positions for 25 years.
Parekh has worked closely with founders, particularly Nandan Nilekani, chairman Infosys, to create a roadmap for the company, which brings it to par with global peers and also increases its presence in the digital transformation deals.
When Parekh took over the CEO role, he stated in his first analyst meeting that he is rolling out a new strategic plan -- Agile Digital Business, Energise the core, reskilling and localization -- for the company that will transform the company within three years, and he managed to do that. The company is back to winning big deals. For FY18, the company has a total TCV of $3 billion and is now looking for a more sustainable $2-2.5 billion TCV per quarter.