For the past one year, Infosys has been the center of various controversies. Be it Vishal Sikka, the recently resigned CEO and MD’s salary, or the public tiff between the founders and the current management of the company. With Sikka resigning on Friday, it remains to be seen who would be appointed as the new CEO. Along with this, it will be a wait-and-watch game to see if things get settled at the second largest information technology company in India. We list some of the top problem issues in recent times at Infosys.
August 2017: Narayana Murthy wants Panaya report to be made public
According to various reports, N.R. Narayana Murthy, founder of Infosys had written a letter to the company asking them to publicize the Gibson, Dunn & Crutcher report on the acquisition of Panaya. Murthy had also questioned the resignation of several executives of the team that acquired the Isareli firm. The company however, refused to make the report public and has put the summary of the report in public domain.
February 2017: Alleged wrongdoings in Panaya deal
There were two anonymous letters released pointing towards wrongdoings in the Panaya deal and several other financial deals. After this, the company had instituted an independent forensic investigation by US law firm Gibson Dunn & Crutcher. However, post-investigation there was no evidence found of wrongdoing or inappropriate contracting, giving a clean chit to the team.
February 2017: Founders raise concern over corporate governance issues
In February this year, there was a public fallout between the founders of the IT major and the current management. The major concern raised by the founders was the payment of Rs.23.02 crore severance pay, salary and other benefits to Rajiv Bansal, who was chief financial officer of the company. Bansal had joined the company in 1999 and resigned in October 2015. Narayana Murthy had raised concern if the huge severance pay was awarded to hide something.
January 2017: D N Prahlad appointed as director in the nomination and remuneration committee (NRC)
The appointment came after concerns being raised over the hike in remuneration been awarded to Sikka. The committee oversees the incentive and pay of the senior most executives of the company. The appointment was made on the basis of Murthy’s recommendation.
February 2016: Increase in Sikka’s pay
Sikka’s pay was increased by 55 percent to USD 11 million including restricted stock. This increase did not go down very well with the founders. There were also issues raised against Sikka’s spending, which included him using a chartered plane for travel.