Infosys adopts recoupment policy

The policy mandates recovery of losses from an executive officer if the company restates its financial statements

The board of Infosys on Thursday adopted a recoupment policy that mandates recovery of losses from an executive officer if the company restates its financial statements due to fraud or non compliance of rules.

"The company shall seek to recover any incentive based compensation received by any executive officer of the company that is in excess of what would have been payable to such executive officer based on the restated and corrected financial statements," Infosys said in a notification to the Bombay Stock Exchange. The policy is also called as claw back.

"It is a good governance practice by Infosys," said Shriram Subramanian, managing director of InGovern, a proxy adivsory firm .

Infosys said the executive officer would mean the current or past chief executive or any current or past executive reporting to the CEO.