Moneycontrol Bureau
The board of Infosys put its weight behind CEO Vishal Sikka on Monday and defended the move to increase his compensation to USD 11 million. Chairman R Seshasayee said even though the compensation was increased, his fixed component came down to USD 4 million from USD 5.8 million. His variable component was linked to his longevity with the company and the company’s performance.
Seshasayee said the company had linked his compensation to global benchmarks and for this the board had a resounding shareholder approval. “We did what was in the best interest of the company.”
Since the company was revising the compensation, the company sought shareholder approval before April 1, 2017 when it became effective. As a result, the company opted for a postal ballot.
The board also defended Sikka’s travel by private jet. Seshasayee said that in the last couple of months itself, Sikka had travelled 50,000-60,000 km a month and of this only 8 percent was through chartered flights. Justifying the move, Seshasayee said if a company expected its CEO to travel and deliver value, then the shareholders needed to also make a link between cost and value.
The other allegation that the board of Infosys countered was the acquisition of an expensive office space in Palo Alto. Linking the move to the company’s transition, Seshasayee said the company wanted to be known not just as a back office, so the decision was taken to rent an office space on the high street. Seshasayee said, “We need to recognize that the global company is trying to rebrand itself. A globally competitive workplace will have to focus on expectations of a new reality.”
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