Source | LiveMint
At Infosys Ltd, is it endgame in the fight between founders and the board and management?
This is the question being asked by employees, analysts and investors after the founders’ unhappiness over some decisions taken by the board over the last 10 months. The disagreement came to light when Infosys founder N.R.Narayana Murthy expressed disappointment with the current board.
“The issue is not with (chief executive officer) Vishal Sikka but with the quality of governance at the board. It has slipped,” Murthy was quoted by The Times of India in a piece published on 10 February.
“I have heard this disappointment from a host of former employees and current employees who feel let down by the management and the board,” Murthy told The Economic Times in an interview. “I have heard from former directors (executive and independent) who are amazed that such acts are taking place at Infosys. Several investors have written to me”
That things haven’t been great between Sikka and its band of founders headed by Murthy is well-known. Mint has been the only paper that has reported the issues over the last 10 months. But despite Murthy’s clarification that all is well between him and Sikka, employees are worried, especially in view of the media reports on old issues being circulated in the past three days.
“Most employees in campuses are worried and asking what is this all about,” said an employee at the Bengaluru office of the company. “The CEO has asked us all to focus and not listen to the media reports. But if the media is writing about it, then surely not everything is okay. So why will this be between founders and board, especially as most of the issues are old. So there is this fear that something may not be right between founders and CEO.”
Infosys continues to downplay any talk of a rift between the founders and the board or the founders and Sikka.
An Infosys statement said: “The Company denies any governance lapses alleged by some sections of the media in reports that have appeared in the last few days on purported rifts among the Founders, the Board and the Management.”
“While the Board appreciates and respects inputs from the founders, it is committed to fulfilling its fiduciary responsibility to act independently and in the overall interest of the shareholders”
The issue of governance standards raised repeatedly by the founders over the last 10 months are on three main developments.