Document:

infy-ex411_348.htm

 

 

Exhibit 4.11

 

 

First Addendum to Executive Employment Agreement

 

 

This addendum (the “Addendum”) effective as of June 22, 2019 (the “Effective Date”) is made to the Executive Employment Agreement (defined hereinafter), entered into by and between Infosys Ltd. (the “Company”) and Salil S Parekh (“Executive” and together with the Company, the “Parties”)

WHEREAS:

 

	
 
	
1.
	
Parties had entered into an Executive Employment Agreement (“Agreement”) on 2nd December, 2017
	
 

	
 
	
2.
	
Parties now desire to amend the Agreement, in the manner as set forth in this First Addendum.
	
 

 

NOW THEREFORE in consideration of the foregoing and the mutual provisions contained herein and for other good and valuable consideration, the parties hereto agree as follows:

 

	
 
	
1)
	
A new clause 2 (iv) (d) shall be added to the Agreement to read as follows,

 

“2019 Annual Performance Equity Grant - Subject to the approval by the Board (or its committee), the Executive will be eligible to receive such number of performance based stock incentives in the form of Restricted stock units (RSUs) on an annual basis, having a market value of Rupees Ten Crore (Rs 10,00,00,000) (determined based on the market price of the Company’s equity shares on the date of the grant), which shall vest 12 months from the date of each Grant (“the 2019 Annual Performance Equity Grant”). The Vesting of the 2019 Annual Performance Equity Grant is subject to the Company’s achievement of certain performance milestones as set out in the Infosys Expanded Stock Ownership Program – 2019 and as determined by the Board (or its committee); and any RSU’s that do not vest as a result of the failure of the Company to meet the milestones shall be forfeited. The 2019 Annual Performance Equity Grant shall continue till the expiry of the pool of stock incentives available under the Infosys Expanded Stock Ownership Program – 2019, or until cessation of the Executive’s employment with the Company, whichever is earlier. The vesting and other terms of each Grant will be governed by the grant agreement between the parties.

 

Company Confidential - This communication is confidential between you and Infosys Limited

 

 

 

 

 

	
 
	
2)
	
Clause 2 (iv) (c) of the Agreement shall be replaced with the following,

 

“Performance Equity Grant - Subject to the approval by the Board (or its committee), the Executive will be eligible to receive an Annual Performance Equity Grant of Shares having a Value equal to Rupees Thirteen Hundred Lakhs (INR 130,000,000). The number of shares that will vest under each Annual Performance Equity Grant shall be calculated upon the Executive’s successful completion of each full fiscal year with the Company, the first of which shall conclude on March 31, 2019. The vesting of the Annual Performance Equity Grant is subject to the Company’s achievement of certain milestones as determined by the Board (or its Committee) in its sole discretion, from time to time, in consultation with the Executive; and any Shares that do not vest as a result of the failure of the Company to meet the milestones shall be forfeited. The Performance Equity Grant shall be granted to Executive within sixty (60) days of the beginning of each financial year for each of the Executive’s Term. The Shares shall vest as soon as practicable after the Board (or its Committee) determines the number of Shares that will vest under each Annual Performance Equity Grant but in no event later than the 15th day of the 3rd month following the close of the Company’s fiscal year. For the Performance Equity Grant to vest the Executive must be employed with the Company for the 12-month period measured from the Date of Grant; except in the event the Agreement is not renewed after the Initial Term the Executive shall be entitled to receive the Shares under the Performance Equity Grant for the year ending March 31, 2023, subject to the achievement of the milestones determined by Board and pro-rated to account for the partial time he was employed for the fiscal year 2022-2023.”

 

	
 
	
3)
	
Save and except to the extent expressly and specifically provided in this Addendum to the Agreement, all other terms and conditions of the Agreement shall remain unaltered and continue to remain in full force and binding upon the parties hereto.
	
 

 

IN WITNESS whereof each of the parties have executed this Addendum, in the case of the Company by their duly authorized officer, as of the day and year first above written.

 

	
Executive
	
 
	
INFOSYS LIMITED

	
 
	
 
	
 

	
Signature:
	
 
	
 
	
 
	
Signature:
	
 
	
 

	
 
	
 
	
 

	
Name : Salil S. Parekh
	
 
	
Shanker Krishnamurthy

	
 
	
 
	
 

	
Employee No.: 782410
	
 
	
EVP and Group Head – Human Resources

	
 
	
 
	
 

	
Date:
	
 
	
Date

 

Company Confidential - This communication is confidential between you and Infosys Limitedinfy-ex412_351.htm

Exhibit 4.12

 

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/Fixed 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;

 

	

	
Overview of Executive Leadership Compensation – ’20   
	
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•
	
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 allocation of performance- oriented stock-based incentives.
	
 

 

 

	
 
	
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 is payable on the achievement of KPIs as established by the NRC. The Company operates a non-contractual discretionary Performance Bonus Plan.

	
 
	
•
	
Stock Incentives: Stock or Equity based incentives are a substantial part of the Total Rewards of Executives and are determined by the desired pay mix standards for that level. Stocks incentives can be granted as part of Total Rewards or over and above, as decided by CEO, COO and NRC from time to time. The stock incentives are governed by the 2015 Stock Incentive Compensation Plan (2015 Plan), the Expanded Stock Ownership Program (2019 Plan) or such other plans as may be approved by the shareholders from time to time. 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

 

Executive compensation at Infosys 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 Executives, pay at risk in the form of stock incentives and performance bonus together constitute about 65% to 85% of their  compensation. 

 

	
 
	
d.
	
Compensation Practices

 

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

 

	
 
	
•
	
Use appropriate peer groups when establishing the total rewards benchmarks 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

 

 

	

	
Overview of Executive Leadership Compensation – ’20   
	
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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 goals like revenue growth, operating margin along with components of individual goals as applicable, linked to the Company’s business targets. The goals and the final payout rates are reviewed and approved by the NRC.

 

	
 
	
ii.
	
Stock Incentives

 

All Stock or Equity based incentives are generally granted or vested based on achievement against Company and/or Individual performance parameters. Time based Equity grants are generally dependent upon the achievement of Company and individual performance. 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. In case of Performance based Equity grants, the numbers of shares that will vest is based Company’s and/or individuals’ achievement of certain performance parameters. 

 

 

	
 
	
f.
	
Additional Executive Compensation practices and Employment agreements

 

In addition to the primary pay components, the Company provides competitive health and wellness benefits and perquisites. These benefits are designed to protect the financial, physical and emotional 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 current agreement of Mr. Salil Parekh can be accessed at << to be updated to include addendum to CEO Employment Contract>> The agreement of Mr. U. B. Pravin Rao can be accessed at << to be updated to include addendum to COO Employment Contract >>.

 

The details of compensation relating to fiscal 2020 for Executives is given in the Annexure << 3>> of the Infosys Annual Report 2019 – 20.

 

	

	
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