Infosys Chairman R Seshasayee came under fire on Friday with two former directors, T V Mohandas Pai and V Balakrishnan, publicly asking him to step down over alleged governance issues and disclosure lapses. The company remained silent on the charges.
The pressure intensified with founder N R Narayana Murthy pointing a finger at Seshasayee. Murthy also criticised the high compensation package of Chief Executive Officer (CEO) Vishal Sikka (Rs 49 crore annually), and high severance packages of former chief financial and chief compliance officers Rajiv Bansal and David Kennedy, respectively. The company has claimed it followed governance norms in these decisions.
Pai and Balakrishnan also supported Murthy’s choice of naming Marti Subrahmanyam, Charles E Merrill Professor of Finance at the New York University Stern School of Business, as co-chairman of the company. He served as independent director on the company board for 13 years till 2011.
Both former Infosys directors, Murthy and proxy advisory firms such as InGovern have complained about the dilution of corporate governance norms in the company, since Sikka took over as CEO in August 2014.
“In Kannada there is a saying: If you sit under a toddy tree and drink milk, people will think you are drinking toddy. Therefore, it is very important for us not only to do the right thing, but also to be seen doing the right thing. That is the whole issue,” Murthy told television channel.
Murthy first raised the red flag on the severance package to Bansal a year ago. On Friday, he said Bansal had been given 30 months’ salary of Rs 24 crore, but the company on Thursday had claimed Bansal was given Rs 17.38 crore, amounting to 24 months of his pay.
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