Murthy flags 'huge' severance pay, governance issues at Infy

[vgane]

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Is Infy the private fiefdom of Vishal Sikka...The payment of Rs 23 crores as severance pay to Rajiv Bansal is a black mark in the history of Infosys..I agree with NRN...Is the money paid to cover up something..The Board has to do some introspection and come clean on this!!

Murthy flags 'huge' severance pay, governance issues at Infy

February 10, 2017 21:11

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The rift between founders and the board of Infosys came to the fore today with co-founder N R Narayana Murthy raising questions about the "huge" severance package of Rs 23 crore paid to its former CFO, leading to
disquiet among employees and investors.

Murthy said he would not have flagged concerns if it had not been for the 1,800 e-mails he received from employees and investors highlighting the severance pay and governance issues at Infosys.

"If we had not seen the kind of thing that happened, if I had not received 1,800 e-mails from employees, from various investors about the severance pay, about some or the other governance issues, I would have had no worries," he said.

Stating that no severance packages were given to employees like Mohandas Pai, V Balakrishnan, B G Srinivas and Ashok Vemuri when they quit, Murthy said: "Therefore, there is a little bit of a consternation as to why such a huge severance pay was paid."

"Let me make it very very clear that it is not the management that concerns me. I think we are quite happy with Vishal Sikka, he is doing a good job. However, what concerns some of us, particularly the founders, and seniors, former Infoscions is that there have been certain acts of governance that could have been better," Murthy told news channel CNBC-TV18.

He cited the example of a 30-month severance pay being given to former chief financial officer Rajiv Bansal that amounted to Rs 23 crore.


http://news.rediff.com/commentary/2...sues-at-infy/3139df4ef8cb3ac1515d555e5147b1ad

 

[krish44]

Now another Tata type story
.
Old founders not liking V Sikka"s brash style of new profesional management giving better results.

It is more importantly personality clash of NRN and VS.

It will lead to VS exit

 

[vgane]

Now another Tata type story
.
Old founders not liking V Sikka"s brash style of new profesional management giving better results.

It is more importantly personality clash of NRN and VS.

It will lead to VS exit

Sikka is a bragging Panju which NRN is not liking...Other bone of contention is the severance pay which no other old timer got when they left (forced to leave)!!

 

[krish44]

Only NRN would like to boast about himself. He does not like others like him.

I learn both are like in many ways .Hence the friction.

Some never like to give up .

NRN was blaming other board members about severance pay etc.

He does not like employees to get high pay or severance pay.

 

[Rudhran]

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"If we had not seen the kind of thing that happened, if I had not received 1,800 e-mails from employees, from various investors about the severance pay, about some or the other governance issues, I would have had no worries," he said.


http://news.rediff.com/commentary/2...sues-at-infy/3139df4ef8cb3ac1515d555e5147b1ad

1800 emails from employees.......?? A responsible one cannot ignore this....

 

[vgane]

He does not like employees to get high pay or severance pay.

What should be the ratio of salary between CEO & an entry level employee..Anything above 100 is too much..In Infosys it is 2500...That's the reason

 

[Rudhran]

[h=1]Narayana Murthy ends row with Infosys board and CEO, but says his concerns remain[/h][h=2]Vishal Sikka assured shareholders that corporate governance was the ‘core foundation’ of the company and reiterated his call to end 'media drama’.[/h]Infosys founder Narayana Murthy on Monday tried to end his row with IT major’s board and CEO Vishak Sikka, saying he was certain the company would address his concerns about corporate governance. “I felt that I don’t want it to snowball. I don’t have the time. Neither should the board and the management be spending time on it,” he told Bloomberg, also referring to the severance pay granted to former CFO Rajiv Bansal and compliance head David Kennedy.

“Let me stop. I have made a point, paying such large sums of money is confusing. Now they have to sort it out,” Murthy said. Led by Murthy, Infosys founders Nandan Nilekani and Kris Gopalakrishnan had raised a number of concerns recently, which escalated into a publicised affair.

Besides the severance pay, they had also questioned Sikka’s reappointment as CEO and his salary hike, in addition to the appointment of Union Minister Jayant Sinha’s wife Punita Kumar Sinha and the reappointment of Jeffrey Sean Lehman as non-executive directors on the board. The differences between the board and company co-founders had affected Infosys in the stock market.

Even though Murthy said he would now leave it to the board to address the issues, he told The Economic Times he still objected to the large severance sums. “The board should address all issues and concerns. There should be full transparency...Good leaderships demands that they listen to all concerned shareholders, re-evaluate their decision and take corrective action.”

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