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Infosys rules out rift between founders-board; says fully aligned with Sikka's strategic direction

Mired In Controversy Around Differences Between Its Founders And The Management, Infosys On Friday Denied Any Governance Lapse And Emphasised That Its Board Is 'fully Aligned With The Strategic Direction' Of CEO Vishal Sikka.

PTI | Updated on: 10 Feb 2017, 10:37:31 AM
File pics of Infosys

New Delhi:

Mired in controversy around differences between its founders and the management, Infosys on Friday denied any governance lapse and emphasised that its board is 'fully aligned with the strategic direction' of CEO Vishal Sikka.

Taking a strong stand on issues -- purportedly raised by the founders -- such as CEO's compensation and severance pay of former employees, Infosys said while the board appreciates and respects inputs from the founders, it is committed to fulfilling its fiduciary responsibility to "act in dependently".

"The board is fully aligned with the strategic direction of Dr Vishal Sikka and is very appreciative of the initiative staken by him in pursuance of this transformation," Infosys Chairman R Seshasayee said.

Read More: Infosys defends pay hike to Sikka, says decision in company’s interest

He further said: "Vishal and the board, while being pleased with the company's resumption of industry-leading performance on many parameters, are keen to further accelerate the progress and achieve even more shareholder value increase, on the foundation of sound governance."

Over the past few days, the Bengaluru-based firm has come under fire over purported differences between some of the founders and the Infosys board.

Infosys has maintained that all decisions were made "in the overall interest of the company" and that it has made "full disclosures" on all developments.

However, Infosys' former chief financial officer T VMohandas Pai has recently said the board should give a detailed answer and not take shelter under "bland" statement that decisions were taken in the interest of the company, which further added to the speculations.

Defending the board, Infosys on Friday said its team is independent and professional.

"The independent directors have no interest other than their commitment to enable this great institution that has been assiduously built by the iconic founders to succeed," it added.  

To formalise this process, the board has recently appointed Cyril Amarchand Mangaldas to receive various inputs from promoters and other key stakeholders, evaluate them and make recommendations to the board.

"This will be an ongoing process for some time. The company will take every step to uphold the standards of governance processes, of which the company has always been an exemplar," it said. 

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First Published : 10 Feb 2017, 10:12:00 AM