IT services firm Infosys gave capital return of over Rs 24,100 crore (about USD 3.1 billion) in 2021-22 with a total dividend of Rs 31 per share along with share buyback of over Rs 11,000 crore, company’s co-founder and chairman Nandan Nilekani said on Saturday.
While speaking at the 41st Annual General Meeting (AGM) of the company, Nilekani announced that the 2021-22 fiscal has been a year of exceptional growth ? 19.7 per cent in constant currency bringing in USD 16.3 billion, which is the fastest growth that Infosys has recorded in 11 years.
He said that the company’s board has recommended a final dividend of Rs 16 per share which along with the interim dividend of Rs 15 per share leads to a total dividend of Rs 31 per share in FY2022.
“With this, the company has announced a total dividend of approx. Rs 13,000 crore for FY22. Along with the share buyback of over Rs 11,000 crore completed in September, the total capital return in FY22 is over Rs 24,100 crore,” Nilekani said.
He said that the board of directors has recommended the reappointment of Salil Parekh as Chief Executive Officer and Managing Director of Infosys, for a second term of five years, from July 1, 2022, to March 31, 2027.
“Salil has delivered industry-leading performance for the company, and it is in the interest of Infosys and its stakeholders to secure the continuity and stability of the current leadership. Salil brings with him a proven track record of driving digital transformation for enterprises, executing business turnarounds, and managing acquisitions successfully,” Nilekani said.
Infosys has sought shareholders’ nod for the re-appointment of Parekh for a period 5 years with a massive 88 per cent jump in annual remuneration to Rs 79.75 crore–making him one of the highest-paid executives in the country.
Parekh, 58, took home a salary of Rs 71.02 crore in the fiscal year ended on March 31, 2022. This included Rs 52.33 crore from exercising RSUs (Restricted Stock Units) granted to him earlier.
Nilekani voluntarily chose not to receive any remuneration for his services rendered to the company.
In the shareholder notice, the firm justified the steep hike citing industry-leading growth in recent years.
A shareholder recommended that Parekh salary should be higher than those being paid by competitors. Some shareholders asked the company to increase representation of women directors on the company’s board.
At present, Infosys has two women independent directors, Kiran Mazumdar-Shaw, who is executive director of Biocon, and Chitra Nayak.
Some shareholders asked the management when they can get a bonus as it has not been announced for the last five years.
Nilekani also offered gratitude to Sudha Murty for her 25 years of service at Infosys Foundation.
“On behalf of the CSR Committee of Infosys Limited and the Trustees of the Infosys Foundation, I also record our heartfelt gratitude to Mrs. Sudha Murty who retired from the office of Chairperson of Infosys Foundation on December 31, 2021, after an inspiring 25-year journey of service to the underserved and dedication to social causes,” he said.