Software giant Infosys has witnessed a major churn over the last few months, with its boardroom battling a spate of issues that led to the exit of its first non-founder executive Vishal Sikka on 18 August, and the return of its co-founder Nandan Nilekani as non-Executive Chairman, on 24 August.
Issues that promoters have flagged include erosion in corporate governance, huge salaries to top executives, costly acquisition (Panaya) and a large severance package to an ex-CFO. Here’s a quick recap of the drama at Infosys so far:
- 9 February: Narayana Murthy expresses concern over governance issues in the Board.
- 13 February: Board denies rift with Murthy on governance issues, defends Sikka, acquisition of Panaya and high severance pay to ex-CFO Rajiv Bansal and General Counsel David Kennedy.
- 20 February: Board refutes an anonymous whistleblower's charges on Panaya deal in February 2015.
- 21 February: Sikka accuses media for targeting company, employees and him to the point of harassment.
- 23 February: Board hikes salary of Chief Operating Officer Pravin Rao, appointed Interim CFO and Managing Director till 31 March 2018.
- 13 April: Independent Director Ravi Venkatesan appointed as Board Co-Chairman, revenue guidance for fiscal 2018 lowered.
- 1 June: Murthy tells IT honchos to take less salary and avoid layoffs.
- 13 June: Infosys terms media coverage and activist investors as risk factors.
- 24 June: Co-founders stay away from stormy Annual General Meeting.
- 17 July: Murthy regrets quitting as Infosys Chairman in June 2014.
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- 18 August: Sikka resigns as CEO & MD, appointed Executive Vice-Chairman till 31 March 2018, Board blames Murthy for Sikka's exit, appoints Rao as Interim CEO and MD, company's stock crashes 10 per cent on BSE.
- 19 August: Announces buyback of 11.3 crore shares at Rs.1,150 each.
- 24 August: Board appoints co-founder Nandan Nilekani as non-Executive Director, Board Chairman R. Seshasayee and Co-Chairman Ravi Venkatesan, Sikka and two Directors Jeffery Lehman and John Etchemandy resign.
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