New Delhi: IT major Infosys on Wednesday defended thee hike of chief executive officer and MD Vishal Sikka and the severance package of two former senior executives saying all decisions were made “in the overall interest of the company”, amid reports of simmering differences between the CEO and its founders
Shares of the company dived 1 per cent on BSE on Wednesday
The Bengaluru-based firm said it has made “full disclosures” on all developments
“With regard to concerns on governance… we would like to reiterate that all decisions have been made bona fide, in the overall interest of the company, and that full disclosures have already been made thereon,” Infosys said in an emailed statement
The reports said Infosys founders N R Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani had written to the board last month expressing their concerns over pay hike to chief executive Vishal Sikka, and the severance package offered to two senior executives
Infosys founders, along with their family members, owned 12.75 percent in the company at the end of December 2016, as per the data available on the BSE
“The Board receives suggestions and inputs from various stakeholders, including promoters, which are evaluated with due importance. The company will continue to be guided by the overall interests of all stakeholders,” Infosys said in its response
The concerns raised include severance package of Infosys’ former CFO Rajiv Bansal and ex-general counsel David Kennedy
For the period of April 1-October 12, 2015, Bansal is slated to receive Rs 23.02 crore compared to Rs 4.72 crore that he received for the entire FY’15, as remuneration
In January, Kennedy quit Infosys and is due to receive severance payments of USD 868,250 (Rs 5.85 crore) and other reimbursements over 12 months
Besides, last year, Infosys had raised the annual compensation of Sikka, whose term has also been extended till 2021, to USD 11 million
This includes an annual base salary of USD 1 million, variable pay of USD 3 million (subject to the company achieving certain targets) and the rest in stock compensation.