Well Narayanmurthy may have his own reasons.it is no denying that Sikka deserved his money when all the founders who managing shows the company was going downward trend even before Sikka submitted his resignation the profit were on rise.The founding fathers waht the company to fallow their example like father telling his son what to do when they quit voluntarily or otherwise they have no business to interfere.Similar was the case with Ratan Tata,Even if Murthy and his co wants they join the board of directors. Now no CEO outisde the infosys will venture to become its head as big brother is watching.
The cultural shock is really about changing from services to products. Don't be surprised if some of Infosys's undisclosed customers got shaken by the Panaya acquisition and the product directions of the company which could challenge them - the likes of Amazon, Microsoft, Apple, etc. all of them also have AI strategy and can't let their IT services provider compete with them ! A class war of sorts.
Plus, the erstwhile patrons - bureaucrats, etc can't get their free rides - jobs for their kids. A company which doesn't hire your reference is never forgiven in India. The whole class of people gets at you
Narayana Murthy's hidden hatchet ! by
Bharat Kumar on Aug 19, 2017 11:20 AM | Hide replies | Hide message
The cultural shock is really about changing from services to products. Don't be surprised if some of Infosys's undisclosed customers got shaken by the Panaya acquisition and the product directions of the company which could challenge them - the likes of Amazon, Microsoft, Apple, etc. all of them also have AI strategy and can't let their IT services provider compete with them ! A class war of sorts.
The competitors have used the classical divide and manage technique..who better than a decrepit, senile and thumb-twiddling founder, to start the sledging?
The board and the company would have denied Narayana Murthy and his family, a free run on Infosys resources and freebies to the bureaucrats, the likes of whom patronized Infosys to curry favours for their children. The whole episode sounds so bureaucratic and Vinod Rai/CAG-like. Or, the guys who are idle keep throwing pebbles into the pool, can't handle the calm surface
Except Nilekani during the heydays and the high days of IT services, the CEOs who followed him are non-descript. One of them is known more for his real-estate investments than tech strategy. Kris G couldn't, etc were glorified project managers great for IT services, don't have a technical brain. Murthy himself brought with him a librarian-son as his assistant plus Mrs Murthy undertaking social causes. All of them are now virtually jobless and must be as depressed as the erstwhile Nizam of Hyderabad - wealthy without any clues !
Written like a true Sarkari Babu. The only scale on which Sikka should be judged is the return to shareholders. Infosys stock market performance has been terrific under Sikka after it was in a long decline under Shibulal and his predecessor. The stock had bottomed out and was well on its way up. For the sake of 13% founders shareholding, the remaining 87% shareholders are now going to get scrooged. This sarkari babu knows nothing about private sector. $10m is not a obscene salary for a CEO of a global MNC. Sikka generated at least $100 million additional profits during his tenure.
Re: Babu
by sukhmeet singh on Aug 19, 2017 10:56 AM
it is a typical indian organisation scenario of owner vs manager.. infy is bound to decline as this will hurt the organisation the most.
Re: Babu
by Vijay Sahani on Aug 19, 2017 11:00 AM
Shareholders are not the only stakeholders in a Company. Good governance and ethical practices of a Company has to be seen independently of rising shareholders value.
Re: Re: Babu
by Chaitanya on Aug 19, 2017 09:45 PM
@Vijay Sahani:
I agree.
What is more, the specific issues what NM has been persistently seeking clarity upon, and which are being consistently side-stepped by the Board, definitely matter to the shareholders. The obscene pay hikes being given by the board to its executives amounts to throwing away the company's wealth.
Re: Re: Babu
by rajarshi banerjee on Aug 19, 2017 11:19 AM
I agree, Mr. Sahani, just reaping profits by any & whichever means is not what Infosys was known for. Mr. Sikka as a administrator & CEO could be the best man for the job but that does not absolve him or the board of responsibilities of what the founding fathers of Infosys want the company to be.
Corporate governance & ethical practices are extremely critical to functioning & the kind of salary hikes which top executives have got surely needs to be looked into. If the person at the bottom of the ladder is handed out meagre hand to mouth increments then it becomes very difficult to understand what extra ordinary work do the top brass do to deserve such fat pay cheques? Ultimately every company functions as a team & spoils of the performance should be equitably distributed right till the last person in the chain.
Re: Re: Re: Babu
by Sarita Ranjan on Aug 19, 2017 12:01 PM
Completely agree, but this happens in most of the big companies because the top people have the power of taking decision The same question was asked by Varun Gandhi for parliamentarians.
Re: Babu
by m s on Aug 19, 2017 11:19 AM
Mr. Sikka's performance was not very good and share holder can not get return as per market. Mr. Shikka was working only for Himself and Seniors uplift which was against policy of Infosys. Decline in share is temporary and it will recover again. More than 48CR salary is very high in Indian Enterprises.
Most board members are sycophants. They will go with the tide. They know NM is the past and they have to hold on to the coattails of a new rising star. Most must have picked Sikka and hence the solidarity with him. With a new star rising, new sychophants will also emerge.
