IT major Infosys today defended pay hike to chief executive Vishal Sikka and the severance package of two former senior executives saying all decisions were made “in the overall interest of the company”, amid reports of simmering differences between the CEO and its founders.
This includes an annual base salary of USD 1 million, variable pay of USD 3 million (subject to company achieving certain targets) and the rest in stock compensation. Commenting on the development, Greyhound Research Chief Analyst and CEO Sanchit Vir Gogia said.
“This is standard industry practice and not out of the ordinary and hence, deems no criticism of any sort.” “Separately, with the letter that has been sent out with reported governance issues, while there may be some truth in what has been reported, it’s critical to note that the governance issues haven’t been proved (yet) and it will be unfair to draw conclusions on the basis of the letter,” Gogia said.
He further pointed out that there will always be differences on how an organisation is run, especially once the founders are no more at the helm. Separating ownership from control is one of the long standing battles for founders and the latter raising concerns post stepping down from the helm is both correct and expected, he said.
“We witnessed a similar scenario at Tata Sons only recently. Such changes and counter actions by investors are a standard practice globally and such instances shouldn’t be blown out of proportion,” he said.