Infosys needs Nandan Nilekani for repair job: Proxy firms

Nilekani was 1 of 7 people who set up Infosys 3 decades ago, was CEO between March 2002 & April 2007

Proxy advisory firms say Infosys should bring back co-founder Nandan Nilekani to start the repair job at the company. One proxy firm said Nilekani should be appointed the non-executive chairperson of Infosys to ensure the technology major regains its strong footing.

“He (Nilekani) is possibly the very best candidate Infosys can find globally. He has the stature and gravitas to fit the pieces together. He has kept pace with technology advances, has been instrumental in digitalising the country, and is well-networked with the bureaucracy and global leaders,” said Institutional Investor Advisory Services (IiAS) in a note, adding Nilekani needs to be brought back as the non-executive chairperson.

Nilekani was one of the seven people who set up Infosys more than three decades ago and served as its chief executive officer between March 2002 and April 2007.

According to the proxy firm, Nilekani will intuitively understand the corporate culture, and as such also have a “matching of minds” with some of Infosys’ founders. IiAS said public comments by co-founder N R Narayana Murthy and other ex-employees “have been a constant distraction, periodically destabilising the company.”

Experts say the issue may not die soon. “The uncertainty will continue as the differences between founders and the board continues,” said InGovern Managing Director Shriram Subramanian. “It is clear that promoters found it difficult to let go. They were dogmatic and imposed their views and values on the company. As Indian companies undergo the transition from promoter-led to widely-held, professional-led companies, this issue of ‘letting go’ will take more prominence.” 

From paying unjustified severance packages to top executives to alleged wrongdoing in the acquisition of Panaya and Skava Systems, several of the decisions taken by Sikka and the board has drawn constant flak from Murthy.

J N Gupta, managing partner, Stakeholders Empowerment Services (SES) said Sikka and the company should have come clear on some of the allegations to alleviate all doubts. “Infosys under Sikka created doubts in the people’s mind by not making the Panaya deal investigation public. As a good corporate governance practice, a listed company should not keep such developments under the carpet.”