April 3 (Reuters) - The dispute between founders and board of India’s second largest software services company Infosys Ltd over governance issues spilled into the public again as founder Narayana Murthy criticised a salary hike given to Chief Operating Officer Pravin Rao.
In a letter published in full text by some dailies including Business Standard, Murthy criticised the steep rise in Rao's salary. (bit.ly/2nuNnN9)
“Giving nearly 60 percent to 70 percent increase in compensation for a top level person (even including performance-based variable pay) when the compensation for most of the employees in the company was increased by just 6 percent to 8 percent is, in my opinion, not proper. This is grossly unfair to the majority of the Infosys employees...,” said Murthy in the letter.
“The impact of such a decision will likely erode the trust and faith of the employees in the management and the board,” added Murthy.
According to a stock exchange filing by the company, only 24 percent of promoter votes cast voted in favour of a resolution seeking a 35 percent rise in Rao's compensation, while the rest of the voters abstained. (bit.ly/2nuHy2e)
The development comes after the company in February reassured investors and analysts it was not being distracted by a dispute with its founders over how the company was being managed.
The company’s founders, who still own 12.75 percent of the group, had earlier questioned the pay rise granted to chief executive Vishal Sikka and also the size of severance payouts given to others, including former finance head Rajiv Bansal. (Reporting by Aby Jose Koilparambil in Bengaluru)