February 7, 2017 / 6:52 PM / 8 months ago

IT firm Infosys' founders raise governance concerns with board - CNBC

MUMBAI, Feb 7 (Reuters) - The founders of Infosys Ltd, India’s second-biggest software services exporter, have informed the company’s board that they have certain corporate governance concerns, according to a CNBC-TV18 report late on Tuesday.

Infosys founders N.R. Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani wrote to the company’s board last month raising concerns including the pay hike given to Chief Executive Vishal Sikka, according to the report.

The three founders also questioned the high severance package given to two former senior officials, the news channel reported.

In response to CNBC-TV18’s queries Infosys said decisions had been taken in the interest of the company and the board evaluated with due importance the suggestions received from stakeholders, including promoters.

Infosys and Murthy declined to comment when contacted by Reuters, while Nilekani and Gopalakrishnan were not immediately reachable.

Former chief financial officer Rajiv Bansal’s severance package amounted to 173.8 million rupees, or 24 month’s pay, and the agreement was “being administered in accordance with the contractual rights and obligations”, Infosys said in a statement last year.

In a January filing with the U.S. market regulator, Infosys, which is also listed on Nasdaq, said former general counsel David Kennedy would receive severance payments of $868,250 and other reimbursements over 12 months. (Reporting by Sankalp Phartiyal; editing by Susan Thomas)

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