Rajiv Bansal, who left the company in 2015, was given 24 months‘ salary as severance pay, a fact that has provided fodder to detractors of the management. Roopa Kudva told Moneycontrol in an exclusive interview that due process had been followed in Bansal‘s exit, but added that the company had since reworked contracts of employees.
Infosys learnt important lessons from the departure of CFO Rajiv Bansal, the company’s independent board member Roopa Kudva conceded on Sunday, but mounted a spirited defence of decisions made by the board, now under attack from the company’s promoters.
Bansal, who left the company in 2015, was given 24 months’ salary as severance pay, a fact that has provided fodder to detractors of the management. Kudva told Moneycontrol in an exclusive interview that due process had been followed in Bansal’s exit, but added that the company had since reworked contracts of employees.
“If we look back in hindsight there have been learnings. We have done benchmarking in each market and reworked contracts for severance pay,” she said, while stressing that the 24 months’ severance was in line with the practice in some markets in which the company operated in.
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Kudva said the company was experiencing “transition pangs,” as the management and decision making shifted away from founders to professionals – Silicon Valley professionals to be precise.
Kudva, who is also a member of the company’s audit committee, said the expectations of the present workforce were different from that of the ’90s. “As the company gets more global and talent acquisition happens from different parts of the world, there are implications on compensation. We do not think these are governance issues.”
Infosys CEO Vishal Sikka has come under fire from the company’s founders because of what they consider his profligate lifestyle. Sources close to the founders alleged that Sikka had bought an expensive office in Palo Alto and had hired very expensive security detail for his family. Along with this there are allegations of him and his family using the company jet for personal use.
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In the interview, Kudva said that Infosys did not own any private jet. However, there was a company policy under which employees could use private charter services and the same could be reimbursed to the company. She refused to elaborate on the matter further and said that the company policy was clearly laid down.
On the security detail and office space, Kudva said that companies needed to be relevant in terms of compensation while operating in different markets. In every case, one cannot convert dollars into rupees. “One has to keep in mind the context and the market one is operating in. These are not governance issues. What is important is that benchmarking is done while deciding compensation in that particular market where a CEO is hired,” she said.
First Published on Feb 12, 2017 09:13 pm