Infosys a competitive company, glad to see numbers improving under Vishal Sikka’s leadership: Adrian Lim

By: | Published: February 9, 2017 11:31 AM

Lim also said that Infosys CEO Vishal Sikka has managed to stabilise numbers at Infosys on both revenue and margins. "Infosys is a competitive company. I am glad to see numbers improving under Sikka's leadership."

Infosys, India’s second largest IT services company is making news because of reports relating to the salary hike of its chief Vishal Sikka and also the severance pay given to former chief financial officer Rajiv Bansal.Infosys, India’s second largest IT services company is making news because of reports relating to the salary hike of its chief Vishal Sikka and also the severance pay given to former chief financial officer Rajiv Bansal.

Adrian Lim, Senior Investment Manager, Aberdeen Asset Management on Thursday said that Indian IT companies are very competitive in comparison to global companies. In an interview with ET Now he said, “Indian IT companies have levers which they can use to shield themselves.” Lim also said that Infosys CEO Vishal Sikka has managed to stabilise numbers at Infosys on both revenue and margins. “Infosys is a competitive company. I am glad to see numbers improving under Sikka’s leadership.”

Infosys, India’s second largest IT services company is making news because of reports relating to the salary hike of its chief Vishal Sikka and also the severance pay given to former chief financial officer Rajiv Bansal. The founders of Infosys led by NR Narayana Murthy have written a letter addressed to the board suggesting that former board members like TV Mohandas Pai, V Balakrishnan and Marty Subramanian be brought back as directors, people familiar with the situation told FE.

Sources told FE that founders of Infosys felt that the board should have been more proactive in questioning the decisions taken by the executive team of the company and some of them went against the ethos the IT major has stood for over the years. Sources also said that the founders did not raise questions on Sikka’s performance, given the reality the entire IT industry has been witnessing slowing growth. However, they wanted the board to be circumspect on setting the ambitious goal of achieving $20 billion in revenues by 2020.

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The key issues raised by promoters include the severance package paid to the former chief financial officer (CFO) Rajiv Bansal, who resigned from the company in October 2015. Infosys in its annual filings revealed that it will be paying Rs 23 crore to him but later scaled it down to Rs 17.4 crore after several queries were raised. Similarly, the compensation of former chief compliance officer and general counsel David Kennedy, who resigned in January this year, stood at $868,250. This too had raised some concerns.

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