Document:

infy-ex49_1997.htm

 

Exhibit 4.9

OVERVIEW OF EXECUTIVE LEADERSHIP COMPENSATION

	
 
	
1.
	
Executive Leadership Compensation at Infosys

 

Our Executive Leadership Compensation follows the concept of Total Rewards which comprise three primary components of Base Pay, Performance Bonus and Stock Incentives, where a significant portion of rewards are in the form of stock incentives, in order to align with interest of the shareholders.

 

Executive Leadership (also called “Executives”) are the Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO), Presidents, Group General Counsel & Chief Compliance Officer and Group Head- HRD and are named below.

 

 

 

		
	
Executive
	
Position

	
Mr. Salil Parekh
	
Chief Executive Officer and Managing Director

	
Mr. U.B. Pravin Rao
	
Chief Operating Officer and Whole-time Director

	
Mr. Nilanjan Roy
	
Chief Financial Officer

	
Mr. Ravi Kumar S.
	
President and Deputy Chief Operating Officer

	
Mr. Mohit Joshi
	
President

	
Ms. Inderpreet Sawhney
	
Group General Counsel & Chief Compliance Officer

	
Mr. Krishnamurthy Shankar
	
Group Head – Human Resources and Infosys Leadership Institute

 

 

	
 
	
2.
	
Nomination and Remuneration Committee of the Board

 

The Nomination and Remuneration Committee of the Board (henceforth referred to as NRC) acts on behalf of the Board on matters relating to the compensation of Directors and other Executives. It makes recommendations for changes to the compensation structure, and within the limits approved by the shareholders, as may be applicable.

 

The shareholders approve the overall compensation structure for all whole-time directors.

 

	
 
	
3.
	
Key Aspects of Executive Compensation Policy

 

	
 
	
a.
	
Key Objectives:

 

The Company’s executive pay programs support our Executive Compensation philosophy which aims to:

 

	
 
	
•
	
Attract and retain the best executive talent in order to achieve superior results;

	
 
	
•
	
Create a performance-oriented culture by rewarding performance on comprehensive goals, which include financial, strategic and operational goals; and
	
 

	
 
	
•
	
Emphasize sustainable, long-term shareholder value creation through the use of performance- oriented stock-based incentives.
	
 

 

Overview of Executive Leadership Compensation –‘19

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b.
	
Primary Pay Components of the Executives’ Compensation

 

In support of the above key objectives, the Company’s Executive pay program has been designed around three primary pay components: Base/Fixed Pay, Performance Bonus and Stock Incentives. These three components together constitute the “Total Rewards” of the Executive.

 

	
 
	
•
	
Base/Fixed pay: The fixed cash component is guaranteed pay, and paid periodically.

	
 
	
•
	
Performance Bonus: Cash bonus, payable on the achievement KPIs as established by the NRC.

	
 
	
•
	
Stock Incentives: Stock or Equity based incentives can be either time based or performance based equity grants. Time based stock incentives, in the form of Restricted Stock Units (RSUs), are vested based on continuation of service of the Executives. Performance based stock incentives are generally granted annually, in the form of Stock Options and/or RSUs, upon the achievement of Company and individual goals. Such stock incentives generally vest in three (3) or four (4) equal annual installments or cliff vest after a period of time, based on performance criteria decided from time to time and are exercisable within the period as approved by the NRC. The stock incentives are governed by the 2015 Stock Incentive Compensation Plan approved by the shareholders. Occasionally, the NRC may approve a special or one-time stock based incentives to be granted or vested on the achievement of extraordinary performance goals. One-time equity grants may also be issued to new hires in Executive roles, to meet specific compensation expectations, and these grants may be with special vesting conditions.
	
 

 

	
 
	
c.
	
Executive Compensation Fitment and Benchmarking

 

Infosys Executive compensation is generally aimed towards meeting the market median of total compensation benchmarked amongst the chosen peer group, adjusted as needed to reflect considerations for internal equity, consistency and overall affordability.

 

For senior executive levels a part of the compensation is in the form of stock incentives and the other part is in cash, in the form of fixed pay & performance bonus.  The stock incentives and performance bonus together constitute about 60 to 75% of executive’s compensation. 

 

	
 
	
d.
	
Compensation Practices

 

The highlights of our current compensation practices for our Executives are as below:

 

	
 
	
•
	
Use appropriate peer groups when establishing compensation for a particular Executive role

	
 
	
•
	
Align Executive pay with shareholder value through performance-based Stock incentives

	
 
	
•
	
Retain Executives through multi-year vesting of Stock Incentives

 

 

	
 
	
e.
	
Pay for Performance

 

Consistent with the Company’s Executive Compensation philosophy, a significant portion of Executives’ pay is performance-based and ‘at-risk’.

 

	
 
	
i.
	
Performance Bonus

 

The Executive’s performance bonus is linked to the achievement of Company and individual goals. For CEO, the goals mirror the Company targets consisting of revenue growth, operating margin %, digital revenue growth and organization development goals including leadership motivation and organization stability. For other Executives, performance bonus is linked to the achievement of Company goals of 

Overview of Executive Leadership Compensation –‘19

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revenue, operating margin % and digital revenue growth, along with components of individual goals. These individual goals are linked to the Company’s business targets as set by the management and reviewed by the NRC. Adjustments may be made to the payout rate based on the recommendations from the CEO and approved by the NRC.

 

	
 
	
ii.
	
Stock Incentives

 

Stock incentive grants are dependent upon the achievement of Company and individual KPIs. At defined target Company performance, the grants are made at 100%. This is further indexed to the Company stock grant budget pool derived from the Company’s overall performance and affordability and can be adjusted for individual performance. Stock incentives may not be granted if the Company’s performance is below a specific threshold, as determined by the NRC from time to time.

 

The CEO is eligible to receive an annual Performance Equity grant, the numbers of shares that will vest under each annual performance equity grant will be based on the terms of the employment agreement as approved by the Board and Shareholders, and is subject to the Company’s achievement of certain milestones as determined by the Board (or its committee), from time to time in consultation with the CEO. 

 

Any Shares that do not vest as a result of the failure of the Company to meet the milestones are forfeited. 

 

	
 
	
f.
	
Additional Executive Compensation practices and Employment agreements

 

In addition to the primary pay components, the Company provides competitive health and welfare oriented benefits and perquisites. These benefits are designed to protect the financial and physical well- being of employees and allow them to plan for their own retirement. In general, these benefits do not constitute a significant portion of Executive compensation.

 

NRC aims to ensure that the Company’s interests are protected through appropriate executive obligations including non-disclosure, non-compete and non-solicitation agreements. Further, the Company has adopted a recoupment policy under which any incentive compensation paid or payable to Executives (including any bonus pay and equity awards) will be subject to forfeiture, cancellation, recoupment or clawback in accordance with the applicable laws, government regulations and stock exchange requirements.

 

With respect to the employment agreement with our Executive Directors, the agreement with Mr. Salil Parekh was signed effective January 02, 2018. The executive agreement can be accessed at https://www.infosys.com/investors/reports-filings/Documents/CEO-executive-employment- agreement2018.pdf. The agreement with Mr. U. B. Pravin Rao was signed effective November 01, 2016 and can be accessed at https://www.infosys.com/investors/reports-filings/Documents/COO-executive- employment-agreement2017.pdf.

 

The details of compensation relating to fiscal 2019 for Executives is given in the Annexure << 3>> of the Infosys Annual Report 2018 – 19.

 

 

	

	
Overview of Executive Leadership Compensation –‘19
	
3EX-4.1

 EXHIBIT 4.1 
 DESCRIPTION OF CAPITAL STOCK 
 The following describes the common stock, preferred
stock and certain provisions of the Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and Amended and Restated By-laws (the
“By-laws”) of Barnes & Noble, Inc. (the “Company”), and certain related rights. This description is only a summary and is qualified in its entirety by reference to the Certificate
of Incorporation, the By-laws and the Rights Agreement (as defined below), as amended, each of which have been filed with the Securities and Exchange Commission. 

Description of Common Stock 
 General

 The authorized capital stock of the Company consists of 300,000,000 shares of common stock, par value $.001 per share
(“common stock”), and 5,000,000 shares of preferred stock, par value $.001 per share (“preferred stock”). The common stock is traded on the New York Stock Exchange under the symbol “BKS”. 

Voting Rights 
 Each
outstanding share of common stock entitles the holder thereof to one vote on all matters submitted to a vote of stockholders, including the election of directors. There is no cumulative voting in the election of directors; consequently, the holders
of a majority of the outstanding shares of common stock can elect all of the directors then standing for election. 
 Dividend Rights

 Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of common stock are
entitled to receive ratably such dividends, if any, as may be declared from time to time by the Company’s board of directors (the “Board of Directors”) out of funds legally available therefor. 

No Preemptive or Similar Rights 
 Holders of common stock have no conversion, redemption or preemptive rights to subscribe to any securities of the Company. All outstanding shares of common stock are fully paid and nonassessable.

 Liquidation Rights 
 In the event of any liquidation, dissolution or winding-up of the affairs of the Company, holders of common stock will be entitled to share ratably in the assets of
the Company remaining after provision for payment of liabilities to creditors. 
 Preferred Stock 

The Board of Directors has the authority, without further action by stockholders, to issue up to 5,000,000 shares of preferred stock in
one or more series. The Board of Directors has the authority to determine the terms of each series of preferred stock, within the limits of the 

  
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Certificate of Incorporation and the laws of the state of Delaware, including the number of shares in a series, dividend rights, liquidation rights, terms of redemption, conversion rights and
voting rights. The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of any shares of preferred stock. 
 Stockholder Rights Plan 
 On October 3, 2018, the Board of Directors
approved the adoption of a short-term stockholder rights plan (the “Rights Plan”). In connection with the Rights Plan, the Board of Directors authorized and declared a dividend, payable to common stockholders of record on October 13,
2018, of one right (“Right”) per each share of common stock outstanding, to purchase 1/1,000th of a share of Series K Preferred Stock, par value $0.001 per share (“Series K Preferred Stock”), of the Company, at a price of $24.00
per share (such amount, as may be adjusted from time to time as provided in the Rights Agreement, the “Purchase Price”). If a person or group acquires beneficial ownership of 20% or more of the shares of common stock outstanding or
announces a tender offer or exchange offer, the consummation of which would result in such person or group beneficially owning 20% or more of the shares of common stock outstanding, in each case, without prior approval of the Board of Directors,
each holder of a Right (other than any Acquiring Person (as defined in the Rights Agreement), whose Rights will become void) will have the right to purchase, upon payment of the Purchase Price and in accordance with the terms of the Rights Plan,
that number of 1/1000ths of a share of Series K Preferred Stock equal to the number of shares of common stock which at the time of the applicable triggering transaction would have a market value of twice the Purchase Price. 

The complete terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) dated as of October 3, 2018,
as amended by Amendment No. 1 thereto (“Amendment No. 1”) dated as of June 6, 2019, between the Company and Computershare Trust Company, N.A., as rights agent. Amendment No. 1 provided, among other things, that
(i) neither the approval, execution, delivery or performance or, if approved by the Board of Directors, amendment, modification or waiver of the Merger Agreement (the “Merger Agreement”) dated as of June 6, 2019 by and among the
Company, Chapters Holdco Inc., a Delaware corporation (“Parent”), and Chapters Merger Sub Inc., a Delaware corporation, or the Voting Agreement (the “Voting Agreement”) dated as of June 6, 2019 by and among the Company,
certain significant stockholders of the Company and Parent, or the consummation of the merger (“Merger”) or any other transaction contemplated by the Merger Agreement or the Voting Agreement, nor the public announcement of any of the
foregoing will (a) cause any person to (1) become an Acquiring Person or be deemed to have become an Acquiring Person or (2) be deemed to have acquired Beneficial Ownership (as defined in the Rights Agreement) of any securities of the
Company or (b) result in the occurrence or deemed occurrence of a Distribution Date (as defined in the Rights Agreement), Business Combination (as defined in the Rights Agreement) or other event or occurrence resulting in a triggering of rights
of holders of Rights, or of obligations of the Company under the Rights Agreement, and (ii) the Rights will expire in their entirety, and the Rights Agreement will terminate upon the earliest of (a) the Close of Business (as defined in the
Rights Agreement) on October 2, 2019, (b) the time at which all Rights are redeemed, and (c) immediately prior to the Effective Time (as defined in the Merger Agreement) of the Merger. 

Certain Certificate of Incorporation and By-laws Provisions 

Classified Board of Directors. Pursuant to the stockholder proposal that was approved at the Company’s 2017 annual meeting of
stockholders, the Certificate of Incorporation and By-laws provide for a declassification of the Board of Directors to be phased in over a three-

  
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year period. The Certificate of Incorporation and By-laws previously provided for the Board of Directors to be divided into three classes of directors
serving staggered three-year terms.    Effective as of the annual meeting of the stockholders in 2020, the Board of Directors will no longer be classified. 
 Number of Directors. The By-laws provide that the Board of Directors shall consist of not less than nine and not more than 12 members, as determined from
time to time by resolution of the Board of Directors. 
 Special Meetings. The Certificate of Incorporation and By-laws provide that special meetings of stockholders can only be called pursuant to a resolution adopted by a majority of the entire Board of Directors or by the Chairman of the Board. 

Advance Notice Provisions for Stockholder Proposals and Stockholder Nominations of Directors. The
By-laws establish an advance notice procedure with regard to the nomination, other than by or at the direction of the Board of Directors or a committee thereof, of candidates for election as directors (the
“Nomination Procedure”) and with regard to other matters to be brought by stockholders before an annual meeting of stockholders of the Company (the “Business Procedure”). 

Under the Business Procedure, a stockholder seeking to have any business conducted at an annual meeting must give prior written notice,
in proper form, to the Secretary of the Company. The requirements as to the form and timing of that notice are specified in the By-laws. If the Chairman of the Board or other officer presiding at a meeting
determines that other business was not properly brought before such meeting in accordance with the Business Procedure, such business will not be conducted at such meeting. 
 The Nomination Procedure requires that a stockholder give prior written notice, in proper form, of a planned nomination for the Board of Directors to the Secretary of the Company. The requirements as to
the form and timing of that notice are specified in the By-laws. If the Chairman of the Board determines that a person was not nominated in accordance with the Nomination Procedure, such person will not be
eligible for election as a director. 
 Preferred Stock. As described above, the Board of Directors is authorized to
provide for the issuance of shares of preferred stock, in one or more series, and to fix by resolution of the Board of Directors and to the extent permitted by the Delaware General Corporation Law, the terms and conditions of each such series.

 Certain Amendments. The Certificate of Incorporation contains provisions requiring the affirmative vote of the holders
of at least 80% of the voting power of the then outstanding shares of any class or series of capital stock of the Company entitled to vote generally in the election of directors to amend certain provisions of the Certificate of Incorporation and By-laws, including the provisions relating to the election, quorum, term, removal and classification of directors, the indemnification of officers and directors, and the calling of special meetings. 

Section 203 of the Delaware General Corporation Law. Although the Certificate of Incorporation and By-laws contain provisions with the anti-takeover effects described above, the Company has, in its Certificate of Incorporation, expressly elected not to be governed by Section 203 of the Delaware General
Corporation Law, which prohibits certain business combinations with certain stockholders for a period of three years after they acquire 15% or more of the outstanding voting stock of a corporation. 

  
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 Description of Preferred Stock 

Pursuant to the Certificate of Incorporation, the Company may issue preferred stock. There are currently no shares of preferred stock
outstanding. 

  
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