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NO PERFORMANCE LINKED PAY PACKAGE TO COMMON TECH EMPLOYEES BUT ONLY CEO “SIKKA” GETS RS 49 CRORE U B PRAVIN RAO BY 35% TO RS 12.5 CRORE IN INFOSYS?

 
 
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NO PERFORMANCE LINKED PAY PACKAGE TO COMMON TECH EMPLOYEES BUT ONLY CEO “SIKKA” GETS RS 49 CRORE U B PRAVIN RAO BY 35% TO RS 12.5 CRORE IN INFOSYS?
by System Administrator - Monday, 3 April 2017, 8:41 AM
 

By : M.S.Yatnatti Editor and Video Journalist Bengaluru : In Indian context pay packages are critical one getting more and another less in same work same qualification creates heart burns. Reportedly Murthy said Infosys had always stood for fairness in compensation and had practiced it, and this latest move went against this tradition.He said he believed in striving towards reducing differences in compensation and equity in a corporation, and indicated that Rao's compensation increase served to sharpen the divide. Murthy also said that no previous resolution in the history of the company had received such a low approval. About 24% of the public institutions (including banks, FIIs, insurance companies, mutual funds) and 67% of public non-institutions (ADRs, directors, foreign body corporates, HUF, NRI, trusts, foreign nationals) voted against the resolution. However, overall, 67% of the votes polled was in favour.This abstention is a repeat of a similar one early last year, when the company moved a resolution to increase CEO Vishal Sikka's salary by almost 60% to $11 million. Then too, most of the promoters did not vote for it, but the resolution was passed. More recently , the promoters expressed serious reservations over the massive severance pay granted to former CFO Rajiv Bansal.In Indian context pay packages are critical one getting more and another less in same work same qualification creates heart burns. If pay packages all are linked to performance then every employee pay package need to be performance linked and not just that of "Sikka”. High sikka pay means break down in value system as sikka was brought from outside Infosys ignoring high performers within Infosys. Kiran Mazumdar-Shaw, an independent board member of Infosys and chairperson of biotechnology company Biocon, is reportedly on record stating that Just because Sikka's payment is higher than before does not mean there is a breakdown in the value system. It is all linked to performance. If you consider the performance he is supposed to give us, it is a daunting one. The kind of goals you are giving Sikka, if he pulls it off, he deserves it. If he cannot deliver on the goals, he would not get it. Don't you think everybody who worked so hard to build this great company also got rewarded? But she failed to bring on record it contribution of financial goals by several lakh Infosys employees tech graduates and post graduates and doctorates who are relentlessly work for the company and deliver on the goals and not "just Sikka” need to rewarded and if her statement be taken as recorded in news paper reports about financialgoals that were given "Sikka” alone and if he alone pulls it off and he alone bring financial goals and not the several lakhs employees then his financial innovation which brings financial goal set by Infosys board to "Sikka” need investigation by CBI and NIA and EDas seemingly the income brought without tech employees contribution is illegal and violation of Indian laws . If pay packages all are linked to performance then every employee pay package need to be performance linked and not just that of "Sikka”. A common man can understand this equation why Infosys board need inputs from experts. Infosys while strongly denying any governance lapses by its board, saidthat it had recently appointed the law firm of Cyril Amarchand Mangaldas, described as "corporate governance experts", to receive inputs from the promoters and other key stakeholders, to evaluate them and make recommendations to the board .The board need to act overall interest of its all employees and shareholders and not just to full fill the greed of its CEO and board members and its management.