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Not all Infosys promoters support Murthy's criticism of management: IiAS

IiAS also said that the founders haven't always been in sync, and have had internal differences

Press Trust of India  |  New Delhi 

Narayana Murthy
Narayana Murthy

As a leadership crisis continues at Infosys, an investor advisory firm on Wednesday said the firm's have not always been in sync with each other and N R Narayana Murthy's public of the may not necessarily represent that of the entire promoter group.

Citing the voting pattern of on various proposals that have faced in past three years, Institutional Investor Advisory Services (IiAS) said the have never voted against any resolution.


"In case they do not acquiesce with what the proposes, they express their unhappiness by abstaining; all the while vocalisation their reservation," said.

The report comes amid a tussle between some of founders, including N R Narayana Murthy, and the over a range of issues like alleged corporate lapses at the firm, higher compensation paid to CEO and severance package extended to certain former executives.

Vishal Sikka, the first non-founder CEO of Infosys, resigned on August 18 from the company following months of acrimony with high-profile founders, led by N R Narayana Murthy, citing "malicious" and "personal attacks" on him.

While Sikka did not name Murthy for his exit, the board of the $10 billion firm blamed him for "continuous assault" through "factually inaccurate" and "already-disproved rumours" for the sudden resignation "despite strong board support".

Murthy, who left all board positions at before Sikka began his five-year term in August 2014, launched a counter-offensive saying that all he wanted as a shareholder was good and had neither questioned Sikka's work nor sought money or position for his children.

IiAS said the voting pattern of promoters' shares in resolutions presented by the company over the past 36 months is "unmistakable evidence" of an internal difference of opinion.

Not all vote on all resolutions suggesting that they are in not always in sync with each other, the investor advisory firm said.

"Therefore, one could well conclude that not all share Narayana Murthy's concerns or even support his public of the company and its board," said.

According to IiAS, the voting over this 36-month period shows that even as the public debate over Sikka and the board's behaviour raged, another discussion was taking place, away from the bright lights.

"And just like there have been strong but opposing views regarding all decisions in public, the too have been at odds," IiAS added.

First Published: Wed, August 23 2017. 15:01 IST