Narayana Murthy calls off Infosys power struggle; concerns have to be addressed, says Infosys founder
"Being human, even good people sometimes make mistakes," Narayana Murthy said.
Amid the power struggle in India's second-largest IT services company Infosys, founder Narayana Murthy has now said that even though he is calling off the issue, but the board should address the concerns raised by him about alleged lapses in corporate governance.
Earlier in the day reports quoted Narayana Murthy as saying that he did not want a confrontation with the board to snowball. Complaints by him and co-founders over the last few months objected to large severance settlements with executives.
"No, I have not withdrawn my concerns. They have to be addressed properly by the Board and full transparency should be displayed and people responsible for it should become accountable," said Murthy to NDTV.
He referred to the Board, which has said it has complete confidence in CEO Vishal Sikka, as "good-intentioned people of high integrity" but added that "being human, even good people sometimes make mistakes. This is one such case. But good leadership demands that they listen to all concerned shareholders, re-evaluate their decision and take corrective action."
Earlier this morning, Vishal Sikka, CEO of Infosys said that talk in media on corporate governance issues at the software services firm was "distracting" and that he had good relations with the firm's founders, including Narayana Murthy.
"All this drama that has been going on in the media, it's very distracting - it takes away attention - but underneath that there is a very strong fabric that this company is based on and it is a real privilege for me to be its leader," he said.
Earlier, raising the corporate governance concerns he had clarified that it was not the management that concerns him."I think we are quite happy with (CEO) 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 said.
Murthy, along with other co-founders Nandan Nilekani and S Gopalakrishnan had written to the Infosys board asking why Sikka's compensation was raised and hefty severance packages offered to two top-level executives who quit the company.
Sikka was paid Rs 48.7 crore in basic salary, bonus and benefits last year as compared to basic salary of Rs 4.5 crore for a partial period in 2015. The co-founders also questioned "paying the former CFO (Rajiv Bansal) a 30-month severance pay which amounted to Rs 23 crore."
Notably, Murthy had questioned the chairman and independent director Jeffrey Lehman and raised concerns over corporate governance.