April 3 The dispute between founders and board
of India's second largest software services company Infosys Ltd
over governance issues spilled into the public again
as founder Narayana Murthy criticised a salary hike given to
Chief Operating Officer Pravin Rao.
In a letter published in full text by some dailies including
Business Standard, Murthy criticised the steep rise in Rao's
"Giving nearly 60 percent to 70 percent increase in
compensation for a top level person (even including
performance-based variable pay) when the compensation for most
of the employees in the company was increased by just 6 percent
to 8 percent is, in my opinion, not proper. This is grossly
unfair to the majority of the Infosys employees...," said Murthy
in the letter.
"The impact of such a decision will likely erode the trust
and faith of the employees in the management and the board,"
According to a stock exchange filing by the company, only 24
percent of promoter votes cast voted in favour of a resolution
seeking a 35 percent rise in Rao's compensation, while the rest
of the voters abstained. (bit.ly/2nuHy2e)
The development comes after the company in February
reassured investors and analysts it was not being distracted by
a dispute with its founders over how the company was being
The company's founders, who still own 12.75 percent of the
group, had earlier questioned the pay rise granted to chief
executive Vishal Sikka and also the size of severance payouts
given to others, including former finance head Rajiv Bansal.
(Reporting by Aby Jose Koilparambil in Bengaluru)