BENGALURU: With Infosys again marred by a controversy over a letter by whistleblowers, Infosys CEO Salil Parekh could be a victim of personal grudge, especially when there has been a major rejig in the top management level over the last couple of years, said a close aide. Seven top executives of the IT services company heading the finance, healthcare, manufacturing and consulting divisions had put in their papers after Parekh took over.
Parekh along with company CFO Nilanjan Roy have been accused of resorting to unethical practices by an anonymous group of employees alleging them of willful misstatement material accounting irregularities for the last two quarters. Infosys said the complaint has been put before the audit committee, according to the company’s practice and will be dealt in line with its whistleblowers policy.
Under the corporate governance laws in India, Parekh could even face suspension till the inquiry over the allegations is completed.“Although India is yet to adopt the best corporate practices, however, any executive including the CEO having been accused of financial misgivings or any other bad behaviour by employees needs to be asked to step down by the firm board of directors till the probes are completed,” said Sanjay Kaushik, MD, Netrika Consulting, a risk and integrity management firm.
A barrage of exits since Parekh took over as Infosys CEO: Four days ago, Infosys executive vice president and deputy CFO Jayesh Sanghrajka, who worked with the company in corporate finance, taxation and accounting verticals resigned, on which the IT major declined to comment. Earlier this year, Sudip Singh, global head of energy, utilities, resources and services, reporting to Parekh also resigned, besides some key executives quitting the company’s consulting, healthcare and finance divisions in 2017.
“Infosys has seen major overhauls in the top management levels. That Salil was able to help the firm do reasonably well for the past one year, since he joined, has not made many of those who exit, happier. He comes from a background of overseeing businesses for a global firm for 20 years... unethical practices in two quarters may not hold ground,” said a close aide.