Indian IT giant Infosys on Saturday said that Non-Executive Chairman Nandan Nilekani will not be paid for his current post. The company said in a BSE filing that the Nilekani's office as director is subject to retirement by rotation and so the remuneration paid will be zero.
Nilekani was first appointed to the Board in 1981 and ceased to be its member on July 9, 2009, Infosys said. His last drawn remuneration for the fiscal 2010 in which he ceased to be a director was Rs 34 lakh, it said, adding that Nilekani holds 2,13,83,480 equity shares in the company. U B Pravin Rao, the interim CEO of the company and who holds 5,55,520 shares, will get the same salary he was drawing as chief operating officer.
Rao was elevated as the interim CEO and managing director after Vishal Sikka had quit from CEO's post on August 18, citing "continuous attack" from the founders and distractions. Infosys said Rao will continue to hold the position of chief operating officer for which he will continue to receive the remuneration as approved by the shareholders vide postal ballot concluded on March 31, 2017.
Read: Infosys Hits 2-year Low After Vishal Sikka's Resignation; Hunt For Successor Begins
Rao will not receive any additional compensation for his role as the interim-chief executive officer and managing director, it added. His last drawn remuneration for fiscal 2017 was Rs 7.8 crore (excluding value of stock options granted of Rs 4 crore), Infosys said.
The shareholders had approved an annual remuneration of Rs 12.5 crore (comprising of annual fixed salary of Rs 4.63 crore, annual variable compensation of Rs 3.87 crore at 100 per cent payout and performance based stock options of Rs 4 crore which would vest over a period of 4 years, it added.
Infosys issued postal ballot notice seeking approval from its shareholders on share buyback and appointment of Nilekani as the non-executive chairman. Other resolutions that require shareholders' approval include appointment of D Sundaram as an independent director on the board and Rao as the managing director and interim chief executive officer.
E-voting and voting through postal ballot on these resolutions will begin from September 8 morning and continue till October 7 afternoon.