Infosys lowered its revenue forecast for the year today.
Infosys Co-founder and former chairman NR Narayana Murthy said that he was "disappointed" by Infosys board's answers to the questions that he had raised earlier this year over corporate governance issues and pay hikes to senior executives. The company that is currently being led by Co-founder Nandan Nilekani lowered its revenue forecast for the year today as part of its second quarter results announcement.
Infosys, India's second largest IT services company, was embroiled in a public spat between Mr. Murthy and former CEO Vishal Sikka over alleged corporate governance lapses. Mr Murthy had also questioned
ex-CFO Rajiv Bansal being paid a large severance package as 'hush-money'
Days later, Mr Nilekani, himself one of Infosys' seven founders and a former CEO of the company, was named its non-executive chairman in a victory for the founders. The Bengaluru-based company is currently searching
for its next CEO and has set a deadline of March 2018 to fill the top vacancy.
Here is the full text of Narayana Murthy's statement:
"I stand by every question on poor governance raised in my speech to Infosys investors dated August 29, 2017. The fact remains that none of these questions have been answered by the Infosys board with the transparency it deserves. I am disappointed. The core question still is how and why the Infosys board approved an unusual and unprecedented severance payment agreement of 1000% (of the standard Infosys employment contracts) to the former CFO, and why the board did not disclose this information proactively and much earlier. Sadly, it appears we will no longer know the truth."
Infosys, India's second biggest IT outsourcer, today reported
a net profit of Rs. 3,726 crore for the July-September quarter, beating the Street's estimates.