Letters: Blow to reputation

With reference to “Infosys no longer bellwether of corporate governance” (February 13), both Infosys and the Tata group were known for ethics and corporate governance, but we cannot say the same firmly anymore, as recent events at the two corporate houses have forced us to change our views to an extent. Anyhow, India never had a great reputation as far as corporate governance goes, and it was companies like these which were holding the fort. The crux of the problem in the Infosys case is the hefty severance package given to former chief financial officer Rajiv Bansal, which was 24 months of his salary. Now when Infosys founder N R Narayana Murthy has questioned this, it is obvious that not only shareholders of the IT giant but also other people will ask some tough questions such as whether there is a defined policy for severance package or it was purely the current management’s wish.

Though chief executive officer Vishal Sikka has found support from many quarters, it will not change the fact that this incident has dented Infosys’ reputation to a large extent, more so when Sikka was appointed by none other than Narayana Murthy himself. It isn’t that during Murthy’s regime there were no issues, but then they were not big enough to dent the company’s prospects. Now, it boils down to the Infosys management and board to ensure transparency and corporate governance remain at the forefront and are non-negotiable. There should be clear guidelines with regard to severance package. And it should not be forgotten that the recent moves by the Trump administration in the US have created enough pessimism in the Indian IT sector, so issues such as the one in Infosys should be the last thing the company wants at present. Now, every move of Sikka will be keenly watched.
 

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