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Business News/ Companies / News/  Infosys row: Where it stands, from Vishal Sikka’s salary to Bansal’s severance pay
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Infosys row: Where it stands, from Vishal Sikka’s salary to Bansal’s severance pay

Infosys co-founders have raised issues in their confrontation with the board and CEO Vishal Sikka . Here's how the issues stand as of now

A file photo of the Infosys headquarters in Bengaluru. Photo: Hemant Mishra/MintPremium
A file photo of the Infosys headquarters in Bengaluru. Photo: Hemant Mishra/Mint

New Delhi: Infosys’s co-founders have raised several issues that they cite as coporate governance lapses at the company. Here’s what the company’s chairman has clarified on the issue.

Infosys Ltd co-founders were unhappy at the huge severance package paid to Rajiv Bansal, the IT major’s former chief financial officer. The generosity of this appeared “suspicious" and made it look like “hush money".

Infosys had already reduced this payment from Rs17 crore to Rs5 crore. Infosys chairman R. Seshasayee said that the board had learnt not to 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 Union minister Jayant Sinha and Infosys has always steered clear of politics they argued.

Kumar-Sinha has the board’s complete confidence, said Seshasayee. As does another independent director D.N. Prahlad, a relative of co-founder N.R. 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 chief executive officer 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. Seshasayee added he sees no reason to quit unless the board and the shareholders ask him to go.

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Published: 14 Feb 2017, 12:01 PM IST
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