Infosys on Thursday hired JPMorgan as advisor for its capital allocation, according to sources. "JPMorgan's mandate includes advise on capital allocation, institutional support," the sources said.
Infosys on Thursday hired JPMorgan as advisor for its capital allocation, sources told ET Now. “JPMorgan’s mandate includes advise on capital allocation, institutional support,” the sources said. “Infosys is considering various options including buyback. Founders view on buyback is not clear at this point as the founder group is not in favour of management taking call on share price,” the sources revealed.
Earlier today TCS in a notice to stock exchanges said, “The Board of Directors will consider a proposal for buyback of equity shares of the company.” TCS had consistently been building up cash to meet the business requirements and for any possible acquisition. Earlier, Chandra had said that he would not want the company to fall short of cash in case any opportunity for an acquisition came along. Over the years, TCS has been increasing its dividend payments to shareholders, Chandra said to CNBC TV18.
Meanwhile, R Seshasayee addressed the first news conference, since the news of the rift between the founders and the board broke, quelling all the concerns about the CEO Vishal Sikka’s pay recently. Sikka on Tuesday said that “I am a Kshatriya warrior and I am here to stay and fight.” He further said, “I see tremendous amount of change in IT due to automation, digitisation in the next 3-5 years”.
Speaking about the severance pay to Rajiv Bansal, Sikka said, “I will certainly not pay such severance pay to anyone again in future.” “I deeply value suggestions from founders, promoters and shareholders,” he added. ‘Judgement’ on Bansal’s severance pay could have been different, Infosys’ non-executive Chairman R Seshasayee said at a press conference. Seshasayee further disclosed 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.
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Bansal is one of the three executives whose high salaries and severance packages have created a turmoil at Infosys, with three founders – N R Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani writing to the board last month expressing their concerns over corporate governance. Bansal’s severance package by Infosys amounted to Rs 17.38 crore, equalling his 24 month’s pay, Infosys said in a statement last year. For the year ending March 2015, his salary package of $770,858 at Infosys was next only to the Chief Operating Officer U B Pravin Rao and Chief Executive Officer Vishal Sikka.