Boardroom Battles Bring Governance to the Fore
From a perfunctory practice to one that fosters good corporate governance, board evaluation gets serious. reports
Indian boardrooms have lately been swirling thick with stories of quibbles, misunderstandings, clarifications and speculations. The Tata-Mistry boardroom tussle that set off the winter of discontent was moving offstage when Infosys, the posterboy of the new age knowledge economy associated with clean practices and transparency like the Tatas, threw its corporate complaint book into the public domain revealing events too conspicuous to ignore. The unusually hefty pay hike for CEO Vishal Sikka and fat severance packages to two former senior executives have had the founders of the company expressing concerns publicly.
Murmurs about the company’s corporate governance practices grew louder and reached the ears of market regulator Sebi. Sebi recently f loated a circular with guidelines for board evaluation.
“Board evaluation in India till very recently was just about circulating of papers and wasn’t considered a serious exercise,” said Suhas Tuljapurkar, founder director, Legasis Services. “Guidelines today have taken the force of law and Indian corporates have to come to terms with the existence and importance of Board evaluation.”
Legasis Services, a provider of technology solutions and support services in legal and compliance domain, has launched ‘StarBoards’, a board evaluation tool using a mix of software and interpersonal tools like psychometrics, video-conferencing and role-based evaluation interface for individual directors and chairperson.
“Software can only take care of tick-the-box
SHRIRAMSUBRAMANIUM FOUNDER, INGOVERN RESEARCH