The Infosys Spat : What is brewing in this IT major?
N.R. Narayana Murthy , co-founder and former chairman of Infosys- the Bengaluru based IT major, has raised eyebrows by questioning corporate governance in the company. The controversy has apparently stemmed from a mammoth 17.5 crore severence payment to now former Chief Financial Officer Rajiv Bansal. R Seshasayee, the company’s chairman has agreed to ‘cultural differences’ between the board of directors and the founders. He calmed the stakeholders by assuring them that they will be consulted and the board will assert its independence.
Seshasayee said he will continue to do his job as long as the board members and the stakeholders want the same from him. The contentions raised by the founders revolved around the company’s CEO Vishal Sikka’s expenses, acquisition of Panaya- an Israeli software company and the severance amount disbursed to Chief Compliance Officer David Kennedy. Among the various voices on the issue is the voice of former Infosys board member T V Mohandas Pai. He demanded that the company should make public the severance pay details and the exit contract. He felt that the company has avoided facing issues on the values governing it.
Sikka claimed that he shared a heartfelt relationship with the company’s founders and the focus was now on the organization’s transition into a services and software company.
Meanwhile, the company board has admitted that the compensation meted out to Bansal was subjective and it has now streamlined the process for the senior management. Additionally, the board has also clarified that Sikka’s pay adheres to global benchmarks and his expenses are supposed to be approved by the audit committee.