The Infosys management on Monday sought to allay concerns that the company was facing a worsening dispute with its founders over how the company was being run.
Days after Infosys co-founder and former chairman NR Narayana Murthy raised concerns over “governance issues”, “CEO compensation”, and “severance package of former finance head, Rajiv Bansal”, the company board has defended its stance.
The founders were unhappy at the huge severance package paid to Rajiv Bansal, Infosys’ former CEO. The generosity of this seemed “suspicious” and made it look like “hush money”.
Infosys had already reduced this payment from Rs 17 cr to Rs 5 cr. Chairman R Seshasayee said the board had learnt to not be subjective about severance and make it part of employment contracts
The appointment of Punita Kumar Sinha as independent director was opposed by some founders. She is the spouse of minister Jayant Sinha and Infosys has always steered clear of politics they argued
Sinha has the board’s complete confidence, said Seshasayee. As does another independent director DN Prahlad, a relative of founder NR Narayana Murthy and a former employee of the company, added Seshasayee. Prahlad was appointed to the board only recently at the founders’ insistence and there have been reports that the rest of the board wasn’t happy with this.
The founders were unhappy that the board, last year, raised CEO Vishal Sikka’s salary by 55% to $11 million.
The board and the shareholders approved this and there is nothing wrong with the salary, Seshasayee said.
The board has not done a good job with these issues and the chairman should resign
Seshasayee said he sees no reason to go unless the board and the shareholders ask him to.