Infosys defends decisions after media report raises governance concerns

Infosys founders wrote to the board last month expressing their concerns about the pay rise and severance packages given to two former senior officials


In a January filing with the US market regulator, Infosys said former general counsel David Kennedy would receive severance payments of $868,250. Photo: Mint
In a January filing with the US market regulator, Infosys said former general counsel David Kennedy would receive severance payments of $868,250. Photo: Mint

Mumbai: Infosys, 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 N.R. 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.

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% 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.

Former chief financial officer Rajiv Bansal’s severance package amounted to Rs173.8 million, or 24 month’s pay, Infosys said in a statement last year.

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. Reuters

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