Infosys Ltd, India’s second-biggest software services exporter, on Wednesday said it had already addressed concerns about executive pay after media reported that its founders had complained about decisions including a pay hike for chief executive Vishal Sikka.
Infosys founders NR Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani wrote to the board last month expressing their concerns about the pay rise and severance packages given to two former senior officials, CNBC TV18 reported on Tuesday.
Former chief financial officer Rajiv Bansal’s severance package amounted to 173.8 million rupees ($2.58 million), or 24 month’s pay, Infosys said in a statement last year.
Infosys shares fell sharply and were trading down 0.75% at Rs 935.1 at 1:40pm. The stock reaction was to reports that the company founders have raised concerns over corporate governance with the board, including the quantum of salary hike given to CEO Vishal Sikka and the size of the severance packages given to two former executives.
Asked for comment on the report, Infosys said “all decisions have been made bona fide in the overall interest of the company” and that full disclosures had already been made.
Infosys founders along with their family members owned 12.75 percent of the company as of end-December, according to stock exchange data.
Murthy declined to comment when contacted by Reuters on Tuesday, while Nilekani and Gopalakrishnan were not immediately reachable.
In a January filing with the US market regulator, Infosys, which is also listed on Nasdaq, said former general counsel David Kennedy would receive severance payments of $868,250 and other reimbursements over 12 months.
Another top Indian business, the Tata conglomerate, is mired in allegations of corporate governance lapses by its former chairman, who has waged a legal battle against his ouster.