In recent reports, Infosys stated its management and major shareholders will try and keep their differences within the company, to prevent any damage on the brand caused by the public airing of discontent. Chairman R Seshasayee said he reached out to the founders and had a frank discussion with them.
"We agreed that we should not have such interactions through the media and should do it bilaterally. There has been a renewed commitment not to spill any such discussions into the public space," he said answering a call. He said the company was working on a corporate governance framework with law firm Cyril Amarchand Mangaldas, and that the firm would recommend specific attributes for independent directors and how they should function. He also added that several new processes are being put in place, benchmarking best practices in severance pay and CEO expenses and mandating that these be cleared by the audit committee.
When it was questioned whether the rigour would slow down CEO's M&A pursuits, MD Vishal Sikka said the company was always selective in buyouts. "We will continue to look for candidates that fit with our strategic position and strategic direction, and where there's an alignment of purpose with the founders. Frankly, we are not good in M&A and have not bought that many companies," he said. Sikka also said that the company does not want to buy "yesterday's tech". "And at the same time, we want to buy tech that is relevant to us. We have a huge pipeline of candidates. I don't see huge acquisitions in the horizon, but you never say never."
After the investor's call, equity analysts in Morgan Stanley Research, Parag Gupta and Gaurav Rateria said, "The company has addressed various issues relating to corporate governance practices, seeking to put media speculation to rest. We believe investors should welcome these clarifications and the focus is likely to move back to business fundamentals."
