There is a sudden cloud of uncertainty over Infosys Technologies CEO Kris Gopalakrishnan becoming the chairman of the company. One of the front-runners for the post, his chances may have taken a beating with a clutch of visa dispute cases pending in US courts, sources said. A top US lawmaker had recently demanded investigations against the company for alleged visa misuse in a letter to the secretary of state Hillary Clinton.
The visa disputes arose under Kris? regime.
Apart from Gopalakrishnan, independent director KV Kamath, the non-executive chairman of ICICI Bank, is also a top candidate to succeed current chairman NR Narayana Murthy, who retires in August. Infosys will announce its new chairman and CEO on April 30, after a board meeting.
?The political environment is sensitive with high unemployment rates in the US. The visa misuse allegations against the Infosys management have become a challenge for Kris to become chairman,? a source said. The US is Infosys? primary revenue generating geography contributing to about 65% of its top line. ?The firm would like to avoid any embarrassment in case a committee in the US decides to have a hearing and Kris is asked to attend it,? a source said.
On April 14, senator Chuck Grassley of Iowa wrote to Hillary Clinton asking for a thorough investigation by the Departments of State and Homeland Security of the B-1 visa programme and the use of this programme. He referred to a lawsuit against Infosys that details how the company?s management in India decided to use the B-1 business visitor visa programme to get around H-1B programme restrictions. While B-1 caters to business travellers, the H-1B is the primary US work visa. Infosys had denied the allegations.
?I?m very concerned about fraudulent actions that at least one foreign-based company has allegedly been taking in order to get around the requirements and US worker protections of the H-1B visa programme, and more generally, about provisions in current guidance to visa adjudicators that actually authorise such evasion of Congressional intent,? senator Grassley noted in his letter.
?On February 23, 2010, a US employee of Infosys Technologies filed a complaint in the Circuit Court of Lowndes County, Alabama, alleging that his employer was sending lower level and unskilled foreigners to the United States to work in full-time positions at Infosys? customer sites in direct violation of immigration laws. The plaintiff described ways that Infosys, one of the top ten H-1B petitioning companies, had worked to ‘creatively’ get around the H-1B visa programme in order to bring in low-skilled and low-wage workers, resulting in visa fraud against the US government,? the senator mentioned. When asked for a clarification, an Infosys spokeswoman said that ?there is a board process for succession planning and that process will identify the right candidates for chairman’s position. There is no other comment possible on the process.?
An external company watcher felt that the chairmanship could drift towards KV Kamath, post the resignation of director (HR) chief TV Mohandas Pai. ?Pai?s resignation has raked off a founder/non-founder debate and the company may just settle for an external candidate for the chairman?s post,? an analyst said. However, it is not yet clear how the nomination committee would swing. There are many who believe that both Kris and Kamath have equal chances. While Kamath brings in a strategic mindset, the experience of running a large enterprise, managing change and the experience of operating in a global environment, Kris understands the firm?s business like few other people. ?He also brings in global networking, ability to conceptualise, a deep understanding of technology and familiarity,? sources said.