‘Activist Shareholder’ Risk Factor Not Pointing To Founders, Says Infosys Chairman
Seshasayee admits that Infosys’ communication on CEO pay should have been handled better.
Infosys Chairman R Seshasayee moved to allay investor concerns about a number of controversies that played out in the public domain over the last 18 months, as he addressed his last annual general meeting (AGM) on Saturday before retirement.
He admitted, at Infosys’ 36th AGM in Bengaluru, that the company’s communication on its Chief Executive Officer Vishal Sikka’s compensation should have been handled better, but pointed to the 98.7 percent approval received among voting shareholders for the salary proposal.
In a 20-F filing made to the U.S. Securities and Exchange Commission earlier in June, Infosys said the price of its securities could be hit by the actions of some shareholders.
Actions of activist shareholders may adversely affect our ability to execute our strategic priorities, and could impact the trading value of our securities. Responding to actions by activist shareholders can divert the attention of our board of directors, management and our employees and disrupt our operations. Such activities could interfere with our ability to execute our strategic plan...Infosys’ Form 20-F Filing To U.S. SEC In June 2017
Seshasayee clarified that there was no intent in the statement to point to the founders, and that the company continues to actively engage with the promoters.
He will retire as chairman of the board of Infosys in May 2018.