Nilekani Sticks To Stance That Led To Boardroom Coup
No merit to allegations of wrongdoing, Infosys reaffirms.
Infosys Ltd.’s new Chairman Nandan Nilekani has found no merit in allegations of wrongdoing at the company, which triggered months-long bickering between the board and fellow co-founder NR Narayana Murthy that culminated in a boardroom coup in August.
“I believe that all stakeholders acted out of a strong passion for Infosys, wanting what they believed to be the best for the company and to see it succeed,” Nilekani said in a statement accompanying earnings.
In light of my review of these matters, I am fully persuaded, as is the entire board, that the conclusions of the independent investigations are correct. This board and I are committed to the highest standards of professionalism and will deal promptly and decisively with any governance issues should they ever come up in the future.Nandan Nilekani, Chairman, Infosys
Murthy had questioned governance standards at India’s second-largest software services provider over severance pay to former Chief Financial Officer Rajiv Bansal and anonymous allegations of wrongdoing in the acquisition of Israeli firm Panaya during Vishal Sikka’s term as the chief executive officer.
In an emailed statement later in the day, Murthy said that he was disappointed as none of the concerns that he raised were addressed by the Infosys board “with the transparency it deserves”.
The core question still is how and why the Infosys board approved an unusual and unprecedented severance payment agreement of 1000% (of the standard Infosys employment contracts) to the former CFO, and why the board did not disclose this information proactively and much earlier.NR Narayana Murthy, Founder, Infosys
Earlier board led by R Seshasayee too had denied anything amiss, acknowledging that the severance pay matter could have been handled better. Yet, Murthy continued to raise the issue, leading to Sikka’s exit. The former CEO had blamed “false, baseless, malicious and increasingly personal attacks” for his decision to step down. A board recast followed with the exit of Seshasayee and two other independent directors.
Murthy had also criticised the previous board for not making the investigation reports public. Again, Nilekani-led board didn’t give in to the demand.
Infosys said that publishing additional details of the investigation would inhibit the company’s ability to conduct effective investigations into any matter in the future. “Confidentiality is critical to ensuring the candour and cooperation of whistleblowers and other participants in any investigative process,” the statement said. The precedent of releasing the full investigation reports could impair the cooperation of participants should the need for an investigation arise in the future, it said.