New Delhi: Shares of Infosys fell by over 1.00% on Monday after fresh row erupted between the founders and the board of the company over the pay hike to chief operating officer U. B. Pravin Rao.
Infosys shares slipped by 0.94% to Rs1,011.25 apiece in early trade on the Bombay Stock Exchange (BSE). At National Stock Exchange (NSE), shares of the company went down by 1.15% to Rs1,010.45.
Infosys founder N. R. Narayana Murthy on Sunday said that the salary hike to chief operating officer (COO) U. B. Pravin Rao approved by the board in February was not “proper” and “will likely erode the trust and faith of the employees in the management and the board”.
“The impact of such a decision (compensation hike) will likely erode the trust and faith of the employees in the management and the board,” he said.
Infosys Board passed Rao’s salary hike with 67% of votes, while 33% voted against it. Only 24% of promoters voted in favour of the compensation hike, and rest of them abstained from voting. Murthy also said that given the current poor governance standards at Infosys, the targets for variable pay may not be adhered to if the board wants to favour a top management person.