Infosys Ltd.'s founders were forced to step in and voice their concerns after the board “erred” from the high corporate governance standards set in the company, according to former chief financial officer Mohandas Pai.
The founders are not trying to hold on to power, Pai said, having chosen to step down from the company voluntarily and not at anyone's behest. Their tough questions will make the board more accountable, he added, something that stakeholders in India have traditionally shied away from.
In an interview with BloombergQuint, Pai voiced his grouse against "institutional investors" who he said have remained largely silent even after instances of individual companies failing to make adequate disclosures to shareholders.
Infosys Chairman R Seshasayee said on Monday that the board will look to improve communication with all stakeholders, including the co-founders. His conciliatory statement came after a corporate governance row that pitted the board against a a group of co-founders led by NR Narayana Murthy. The co-founders had raised questions on the spike in Chief Executive Officer Vishal Sikka's compensation and large severance packages for two departing executives – former Chief Financial Officer Rajiv Bansal and former Chief Compliance Officer David Kennedy.
Also Read: Infosys Saga: Leaving Sentiment At The Door
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