Infosys Ltd. chairman R Seshasayee said on Monday that in hindsight, the board could have considered a better way to calculate severance package for former Chief Financial Officer Rajiv Bansal. He, however, defended all decisions taken by the board, including a higher compensation for Chief Executive Officer and managing director, Vishal Sikka.
Seshasayee’s clarifications came hours after Sikka tried to calm sentiments saying there was no conflict between the co-founders and the board.
Seshasayee said it it would be wrong to call the present situation a battle between the co-founders and the present board as a team of professionals “who have nothing but the company’s best interests in mind”.
Some co-founders, including N R Narayana Murthy, have questioned governance standards at the country’s second largest IT services provider, especially in deciding Sikka’s pay, Bansal’s severance package and Punita Kumar Sinha’s appointment as an independent director.
Governance values are equally important, it is our (board’s) duty to uphold the interest of these values.R Seshasayee, Chairman, Infosys
Referring to Vishal Sikka's salary, he said, while his total compensation may have gone up, if one looked at the break-up in greater detail, the fixed component has been brought down from $5.08 million to $4 million per annum.
A large chunk of the payout has now been based on Sikka's longevity in the company, something he said is crucial to ensure continuity and consistency at the top.
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