Bengaluru: Infosys Ltd.’s co-founder and former chairman N.R. Narayana Murthy is calling off his fight with the board, saying the company will deal with the questions about corporate governance that have been raised.
Murthy and several other billionaire founders of Infosys had posed questions about governance at Asia’s second-largest IT services company, citing a spike in compensation for chief executive officer Vishal Sikka and severance pay for two departing top-level executives. Murthy led the battle between the founders and the board, raising several matters.
“Let me stop. I have made a point, paying such large sums of money is confusing. Now they have to sort it out,” Murthy said in an interview. “I felt that I don’t want it to snowball. I don’t have the time. Neither should the board and the management be spending time on it.”
Tensions between the founders and the current board come as India’s entire software services sector faces the prospect of slowing growth and potentially damaging changes to US immigration policy. Any move to restrict access to the visas needed to send workers to the US would hurt their ability to service clients in the country. Sikka has pushed the company deeper into automation and artificial intelligence as it faces tighter client spending.
On Friday, an Infosys director said the company had appointed a law firm to handle all communications with Murthy and the other co-founders, stressing the need for transparency in dealings. But Murthy said it was time for him to call a truce so he doesn’t muddy the waters further.
“They will sort it out. It was just a question of bad judgment,” he said, referring to executive compensation. “They are not bad people. They will make sure these things do not happen again.”
Infosys has scheduled a media conference for Monday evening in Mumbai