BENGALURU: Infosys, which announced its March quarter results on Thursday, saw a 2.8 per cent dip in its net profit at Rs 3,603 crore. This, according to the company’s CEO Vishal Sikka, was due to “unanticipated execution challenges and distractions in a seasonally soft quarter”.
He was hinting at the spat between the founders and the management of the company. When asked about whether the appointment of Ravi Venkatesan as co-chairman would bring about better understanding between the board and the management, Sikka said he was not sure. “I don’t know whether it will get worse or better. The board’s function is governance and our job is execution. We will focus on that,” he stated.
The company’s co-founder Narayana Murthy has also said there is a need for compassionate capitalism, taking a dig at the high salaries approved for the top executives in the company, which created a wide gap between the top-rung employees and the rest of them. Sikka said the company believed in rewarding based on performance and the approved salary revisions included high variable pay.
The management was also yet to receive clarity on the role of the new co-chairman appointed by the board. According to the company’s executives, the board took the decision on Wednesday night and the management would be getting clarity soon.
