Ignore All Speculation About Governance, Sikka Tells Staff
Infy appoints Cyril Amarchand Mangaldas to receive inputs from promoters, other stakeholders
tion with the founders could lead to his exit. “We are doing this. We will do this. Together!” Sikka said. Separately, Infosys said it was apBengaluru | New Delhi: Inpointing law firm Cyril Amarfosys CEO Vishal Sikka dug chand Mangaldas to formalise a in his heels and told employprocess to receive inputs from its ees to not be distracted by promoters and key stakeholders, speculation about the comwhile fulfilling its responsibility to pany’s commitment to goact independently. vernance, integrity and “While the board appreciates and values. respects inputs from the founders, it The IT giant has been is committed to fulfilling its fiduciabattling concerns that its ry responsibility to act independentfounders are unhappy ly and in the overall interest of the with its governance and shareholders,” Infosys said in a staboard and what they tement. “To formalise this process, consider a violation of the board has recently appointed Cy‘core Infosys values’. ril Amarchand Mangaldas, corpora“As we head into Q4, let us te governance experts, to receive keep a sharp focus on the exfrom promoters and other key stakeecution of our strategy. Theholders various inputs, evaluate re is no second-guessing our dethem and make recommendations ep commitment, passion and deto the board. This will be an ongoing dication to transforming this greprocess for some time.” at company, even within the Infosys also denied any governanunprecedented new context we find ce lapses and said Sikka had the ourselves in,” Sikka said in the emabacking of the board. il to staff on Thursday. ET has a “The board is fully aligned with the copy of the email. strategic direction of Dr Vishal SikHe also appeared to ka and is very appreciative of the address coninitiatives taken by him in pursuancerns that ce of this transformation,” R Seshathe fricsayee, chairman of Infosys’ board, There is no second-guessing our deep commitment, passion and dedication to transforming this great company, even within the unprecedented new context that we find ourselves in... We are doing this. We will do this. Together!” said in the statement.
The statement also spelled out support for Seshasayee who has been at the receiving end of the founders’ displeasure. ET had reported on Thursday that in July one of Infosys’ prominent promoters was attempting to look for a co-chairman, despite the fact that Seshasayee had been serving as Infosys non-executive chairman for just a year. That idea fizzled out as Seshasayee stepped down on July 28 as non-executive vice-chairman of Ashok Leyland — a post he had held since 2011 — to focus more on Infosys.
“The members of the board are deeply engaged with the company and spend considerable time on the affairs of the company. The board has full confidence in the leadership of Seshasayee to steer this company in these challenging times,” said Jeff Lehman, the seniormost member of the board and chairman of the Nomination and Remuneration Committee.
Sources also told ET that current chief financial officer MD Ranganath is being considered for a board seat, as he is acceptable to the founders, and that there have been issues raised about Sikka’s use of the company’s corporate jet.
Infosys dismissed this as “baseless and speculative”. With regard to the query about the use of corporate jet, Infosys said, “These rumors are malicious and intended to harm the reputation of the company. There is absolutely no element of truth in these rumors.”
Jochelle Mendonca & Neha Alawadhi