Infosys officials blame perception issues

Mumbai: Stating that there is no issue of any corporate governance issues in Infosys, India's second largest software firm on Monday said that the current difference of opinions between the founders and the management is part of the process of transition from a promoter managed company to a completely professionally managed company.

“This is a challenging kind of transition and such challenges would be handled with greater degree of statesmanship. There is no battle as there is no conflict of interest. It is just a convergence of interest. They are important voices and we are sensitive to their voices,” said R. Seshasayee, non-executive chairman, Infosys.

He added that the board will continue to engage with its founders and take decisions in the best interest of the organisation.

“I enjoy a deeply heartfelt relationship with Narayana Murthy. I deeply value his experience and wisdom and even his criticism,” said Vishal Sikka, CEO, Infosys, while addressing the media in Mumbai on Monday.

Refuting reports about appointing law firm Cyril Amarchand Mangaldas to mediate between founders and the current management, Mr Seshasayee said the law firm was roped into advise the company to frame a policy which will help the company to  reach a common ground on values and strategic direction the company should follow. This is important since the company has a vast number of widely distributed  shareholders and other stakeholders with different outlooks, diverse views and different representative interest.

On the issue of exorbitant pay scale awarded to the company’s CEO, Mr Seshasayee said that a global consultant was appointed to determine the CEO’s salary, which is benchmarked to his peers and geography.

"We followed the highest standard of corporate governance norms in this matter. The board sought the permission of shareholders before approving it. About 98 per cent of them voted in favour," he added.

Regarding the issue of high severance package paid to the company's ex CFO, Rajiv Bansal, the company said the former executive was paid just Rs 5 crore and the remaining portion have been suspended, which is now under legal consideration.

 On the issues related to the appointment of independent directors ( Punita Kumar Sinha and D N Prahlad), Mr Seshasayee said both are accomplished individuals with a deep understanding and knowledge of the business and the company followed all due process of law prescribing the appointment of independent directors.