Infosys, recently in news for wrong reasons amid corporate governance concerns raised by the founders, is apparently making extra efforts to better engage with the shareholders, as CNBC TV18 reported that the company’s leadership is meeting to discuss shareholder engagement strategy, among other matters of growth and goals for the next three years.
The executive and senior leadership team of Infosys, India’s second-largest information technology services company, has begun a three-day meet on Wednesday to discuss and set the growth targets for the next financial year 2017-18, CNBC TV18 reported citing unidentified sources.
The company leadership will also discuss specifics of its 2020 goal, CNBC TV18 said. As is known, Infosys has a set itself a goal to achieve $20 billion in revenue with an operating margin of 30% and revenue per employee of $80,000 by the year 2020.
Earlier this year, Infosys founders N R Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani wrote to the board expressing their concerns over corporate governance with the board, including the quantum of salary hike given to the CEO Vishal Sikka, the size of the severance packages given to former CFO Rajiv Bansal and former General Counsel David Kennedy, appointment of independent directors, and allocation of capital.
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INFOSYS CHMN: There Will Be No ‘Rajiv Bansal’ Situations Here On. R Seshasayee, Chairman, Infosys responds to CNBC-TV18’s query. pic.twitter.com/qi3kA3XHCC
— CNBC-TV18 News (@CNBCTV18News) February 13, 2017
Murthy had questioned the ability of the board, led by Non Executive Chairman R Seshasayee, on certain decisions taken by the company in the last one year, feeling that the board should have been more proactive in questioning the decisions at their end.
On its part, Infosys said that it had already addressed concerns about executive pay, and that “all decisions have been made bona fide in the overall interest of the company” and that full disclosures had already been made.
Seshasayee tried to dispel all allegations of misgovernance, saying that Sikka’s compensation package came with very ambitious targets of meeting its goals set for 2020, and that it was finalised in line with the best global standards to promote Sikka’s longevity in the company and to motivate him to lead the company.
However, at the same time, Seshasayee admitted that the company might have erred in awarding a high severance package to ex-CFO Rajiv Bansal, adding that out of the agreed Rs 17.38 crore, the company decided to pay Bansal only Rs 5 crore later, with the remaining amount being withheld pending clarifications on the terms of the severance contract.