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“The company has asked, for business reasons, M D Ranganath, the CFO, to operate from the US,” Infosys said in a filing. It added that based on the recommendation of Nomination and Remuneration Committee, the board of directors has approved a revision to his salary.
Ranganath’s salary will comprise a fixed pay of INR 44.47 million (Rs 4.44 crore) and a variable compensation of up to INR 36.09 million (Rs 3.6 crore), effective July 1, 2017. In addition, in line with the executive compensation policy, he would be eligible for stock incentives as may be decided by the Nomination and Remuneration committee from time to time based on performance.
According to Infosys’ annual report, Ranganath received a compensation of Rs 9.24 crore, which included Rs 2.84 crore in fixed pay, Rs 1.80 crore in bonus and incentives and Rs 4.5 crore in performance-based stock incentives in 2016-17.
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In May, the Bengaluru-based firm had announced its commitment to hire 10,000 locals for its US operations in the next two years as well as setting up four hubs. The first hub is being set up in Indiana that will hire 2,000 American workers by 2021 and a similar number of jobs will be created at the North Carolina hub.
Of the stated goal of 10,000 people, Infosys has already hired 600. While many believe that the announcement was made in attempts to woo the Donald Trump administration in the US, Sikka said it has more to do with the changing business environment.
“It is not so much motivated by visa (issues) as it is (by) changing nature of work and nature of services… If you look at the American companies, we are in the throes of massive digital transformation. The kinds of services, the capabilities that businesses need, are all about being close by (to the customer),” he explained.
The US government has been critical of outsourcing firms for “unfairly” taking jobs away from US workers. In the past, it accused Infosys and its larger rival, Tata Consultancy Services, of “unfairly” cornering the lion’s share of the H-1B work visas.