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The spat between <a href="http://www.businessinsider.in/searchresult.cms?query=infosys&amp;sortorder=effectivedate">Infosys</a> founders and the board members regarding the pay packages and governance issues is getting uglier. 
 On one hand where <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> founders are raising objections over pay hikes and severance packages of the people at the helm, the board is saying not much has been raised in the salaries of the top management. 
 
Infosys founder <a href="http://www.businessinsider.in/searchresult.cms?query=narayana+murthy&amp;sortorder=effectivedate">NR Narayana Murthy</a> wrote a letter criticising pay hike given to <a href="http://www.businessinsider.in/searchresult.cms?query=pravin+rao&amp;sortorder=effectivedate">Infosys COO Pravin Rao</a>, calling it unjustified. 
 
However, <a href="http://www.businessinsider.in/searchresult.cms?query=vishal+sikka&amp;sortorder=effectivedate">Infosys CEO Vishal Sikka</a> said pay hike is critical to retain top talent. 
 "It is essential for us to see that this revision in his compensation, as with several of our senior leadership team, is focused on making Infosys more competitive, is benchmarked against peers. (It) is critical for us to retain key talent and align the long-term interests of our leadership team with that of our shareholders," said CEO <keyword id="6369763" type="PERSON" weightage="100" keywordseo="Vishal-Sikka">Vishal Sikka</keyword>. 
 
Meanwhile, Infosys stated the stock given to Rao has a vesting period of four years. This means the net increase in his compensation for fiscal 2018 will be 1.4% which could go up to 33.4% in the fourth year, assuming similar grants are made in subsequent years. 
 
The company said cash component of Rao's salary, including annual cash bonus, has fallen 10.6% to Rs 4.6 crore from Rs 5.2 crore earlier while the performance-based component, directly linked to company and individual performance, has been increased to 63% from 45% of total compensation. 
 
"I do not see Rao's compensation as a corporate governance issue. That is because it is not a related party transaction. Rao is a professional and not a promoter," said JN Gupta, managing director at Stakeholders Empowerment Services. 
 
The issue will be discussed during the two-day board meeting, which is scheduled for April 12 and 13.

Infosys founders Vs board: Here’s what CEO Vishal Sikka said in COO Pravin Rao's defence

The issue of pay package and increase in compensation to top level employees between founders and the board members in <a href="http://www.businessinsider.in/searchresult.cms?query=infosys&amp;sortorder=effectivedate">Infosys </a>is refusing to die. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=narayana+murthy&amp;sortorder=effectivedate">Infosys founder NR Narayana Murthy</a>, in a letter to media, said giving compensation hike of around 60-70% to a top level person is grossly unfair to other employees. 
 The issue of compensation hike cropped up when in October, <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> said it was raising<a href="http://www.businessinsider.in/searchresult.cms?query=pravin+rao&amp;sortorder=effectivedate"> Infosys COO UB Pravin </a><a href="http://www.businessinsider.in/searchresult.cms?query=pravin+rao&amp;sortorder=effectivedate">Rao</a>’s salary to include a fixed compensation of Rs 4.62 crore and variable compensation of Rs 3.88 crore per annum. 
 
 
This was put to vote and the postal ballot also asked shareholders to vote on the appointment of DN Prahlad as independent director and to approve an amendment to the company's Articles of Association to allow it to buy back shares. 
 
Rao's salary hike passed with 67% of votes cast being in favour of it. About 33% of the votes cast were against the raise. About 74% of shares held by public institutional shareholders also voted on Rao's salary. Of those, 25% were against the increase. Of the 46% of shares that were voted by public- non-institutional shareholders - 67% were against the increase. 
 
In this backdrop, Murthy wrote the increase will erode the trust of the rank-and-file employees. 
 
“Giving nearly 60% to 70% increase in compensation for a top level person (even including performance-based variable pay) when the compensation for most of the employees in the company was increased by just 6% to 8% is, in my opinion, not proper. This is grossly unfair to the majority of the Infosys employees including project managers, delivery managers, analysts, programmers, sales people in the field, entry level engineers, clerks and office boys who are toiling hard to make the company better,” he wrote. 
 
Apart from Rao, <a href="http://www.businessinsider.in/searchresult.cms?query=vishal+sikka&amp;sortorder=effectivedate">Infosys CEO Vishal </a><a href="http://www.businessinsider.in/searchresult.cms?query=vishal+sikka&amp;sortorder=effectivedate">Sikka</a>’s pay package was also in limelight. 
 
"This abstention has nothing to do with Pravin. Those of us who have always stood for fairness in compensation and practiced it, right from the day Infosys was founded, will have to demonstrate it when needed. This is a time when it is needed. Nothing more and nothing less,” Murthy said in the email sent to reporters. 
 
Read his full letter here: 
 
Dear Folks, 
 
If you use the contents of this mail, please quote me verbatim and in full. Please do not paraphrase. 
 
I have lots of affection for Pravin. Let me state you the facts. 
 
I recruited Pravin in 1985 and had nurtured him throughout my stay at Infosys since then. 
 
He had been sidelined. He was not even a member of the Executive Council at Infosys in 2013 when I came back. Kris, Shibu snd I encouraged him, elevated him to the board, and made him the COO when we recruited Vishal as the CEO. So, this abstention has nothing to do with Pravin. 
 
Those of us who have always stood for fairness in compensation and practised it, right from the day Infosys was founded, will have to demonstrate it when needed. This is a time when it is needed. Nothing more and nothing less. 
 
I believe in striving towards reducing differences in compensation and equity in a corporation. You may not know that my Infosys salary at the time of the founding of Infosys was just 10% of my salary in my previous job. I ensured that my younger, co-founder colleagues got 20% higher salary over their salaries in their previous job even though I was 7 levels above them in my previous job and was 11 years older than them. I gave them huge equity compensation the like of which has never been replicated in this world. So, this abstention comes from somebody who has walked the talk. 
 
I have always felt that every senior management person of an Indian corporation has to show self restraint in his or her compensation and perquisites. He or she has to fight for maintaining a reasonable ratio between the lowest salary and the highest salary in a corporation in a poor country like India. The board has to create a climate of opinion for such a fairness by their actions. 
 
This is necessary if we have to make compassionate capitalism acceptable to a majority of Indians who are poor. Without compassionate capitalism, this country cannot create jobs and solve the problem of poverty. Experts tell me that capitalism may come to an end in the not-so-distant future if the current corporate leaders do not heed this advice in India. 
 
Further, giving nearly 60% to 70% increase in compensation for a top level person (even including performance-based variable pay) when the compensation for most of the employees in the company was increased by just 6% to 8% is, in my opinion, not proper. This is grossly unfair to the majority of the Infosys employees including project managers, delivery managers, analysts, programmers, sales people in the field, entry level engineers, clerks and office boys who are toiling hard to make the company better. The impact of such a decision will likely erode the trust and faith of the employees in the management and the board. With what conscience can a decent person like Pravin ( a man schooled in Infosys values for over 30 years) tell his juniors that they should work hard and make sacrifice to reduce cost and protect margin? I have got so many mails from these people asking whether this resolution is fair. No previous resolution in the history of the company has received such a low approval. 
 
Finally, given the current poor governance standards at Infosys, let us also remember that these targets for variable pay may not be adhered to if the board wants to favor a top management person. 
 
Thanks.

Murthy says 60%-70% compensation hike to COO grossly unfair to Infosys employees. Read his full letter here

IT industry, at this time, is facing a lot of issues, leading to the salaries at entry level going down the hill. However, the CEOs from the IT industry have had no effect of this, since they are still earning several hundreds to a thousand times the salaries that a middle employee gets, says an <a href="http://economictimes.indiatimes.com/tech/ites/it-ceos-like-vishal-sikka-are-earning-several-times-the-median-employee-remuneration/articleshow/52931439.cms">ET</a> report. 
 
The shareholders at TCS and Infosys have already begun questioning the payments of these CEOs, which as per them are very high. The highest salary is taken home by Infosys CEO Vishal Sikka, and Infosys also has the highest CEO compensation in comparison to median employee remuneration, which is 935.38 times. 
 
In comparison, Wipro's CEO is paid the least, and the company has the lowest ratio of CEO compensation to employee remuneration (260.19 times). 
 
For several years now, the starting salaries of IT entrants have been within the Rs 2.5-3.5-lakh per annum, which has forced some companies to hire B.Sc and a few arts graduates who can support IT people, so that they can continue maintaining low salaries at the bottom of the pyramid. 
 
<a href="http://simc-wire.com/wp-content/uploads/2015/07/2a14b53c-e0fc-46e1-8131-08c0a571e406wallpaper1.jpg">Image source</a>

IT CEOs take home thousand times a maiden employee’s salary

A change in the long-term bonus policy at <a href="http://www.businessinsider.in/Infosys-is-boosting-overall-productivity-2X-and-there-is-no-stopping/articleshow/52322861.cms">Infosys</a>, which was implemented last year, has resulted in the number of <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> employees earning annual salaries of at least Rs 1 crore falling to less than half, from 113 to 54. The policy was changed for middle to top level title-holding executives at the Indian IT giant. 
 
The policy entitled <a href="http://www.businessinsider.in/Infosys-no-more-capitalism-compassionate/articleshow/52289437.cms">Infosys </a>executives above associate VP level for long-term bonuses that had accumulated over a period of three years, applicable after these executives completed at least one year in the company. This had led to the number of its employees drawing annual salary of more than Rs 1 crore rising nearly 10 times and reaching to 113 in 2015-16. 
 
Also read: <a href="http://www.businessinsider.in/Infosys-CEO-Vishal-Sikka-rakes-in-7-45-million-in-salary-this-year/articleshow/52348269.cms">Infosys CEO Vishal Sikka rakes in $7.45 million in salary this year</a> 
 
However, the concept of "long-term" payouts has now been done away with, with Infosys focusing on handing out annual bonuses to title-holding executives during the same financial year. This has led to this significant change in the number of executives falling in the Rs 1-crore pay bracket. 
 
Also read: <a href="http://www.businessinsider.in/Infosys-top-executives-rake-in-multi-million-dollar-pay-packages-Check-out-how-much-Vishal-Sikka-and-others-earn/articleshow/52340151.cms">Infosys’ top executives rake in multi-million dollar pay packages. Check out how much Vishal Sikka and others earn</a> 
 
This was done to control the wear and tear at the top level of the company, and also to retain key executives so that Infosys has enough weapons in its battle against arch rivals TCS and <a href="http://www.businessinsider.in/Infosys-to-replace-Cognizant/articleshow/52205202.cms">Cognizant</a>. 
 
<a href="https://upload.wikimedia.org/wikipedia/commons/b/b3/Thiruvananthapuram_Infosys_Building.JPG">Image source</a>

Infosys has less crorepatis now as before, thanks to change in bonus policy

<a href="http://www.businessinsider.in/searchresult.cms?query=vishal+sikka&amp;sortorder=effectivedate">Infosys CEO Vishal Sikka</a>’s pay package is at par with chiefs of global IT firms and other top level executives also rake in multi-million pay packages. 
 
While, Sikka’s annual <a href="http://www.businessinsider.in/searchresult.cms?query=salaries&amp;sortorder=effectivedate">pay package</a> was $7.45 million for the 2015-16, <a href="http://www.businessinsider.in/searchresult.cms?query=pravin+rao&amp;sortorder=effectivedate">operating chief UB Pravin Rao</a> took home around $1.4 million. 
 
Also, newly appointed CFO MD Ranganath earned $539,141 for the same financial year. 
 
In 2014-15, Rao received $1 million salary including other incentives such as bonuses, incentives and earnings from stock options. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=infosys&amp;sortorder=effectivedate">Infosys</a> increased the pay packages of top executives in a bid to retain key executives and also reward rainmakers. 
 Sikka was rewarded with a salary hike in starting of 2016 and his tenure was also extended after <keyword id="6354512" type="CITY" weightage="20" keywordseo="Infosys">Infosys</keyword> reaped fortunes and trumped rivals under his guidance. 
 
In 2017, Sikka will make nearly $11 million every year. As part of his old contract, Sikka made $7.08 million, including stock options. 
 
Meanwhile, former CFO Rajv Bansal, who quit Infosys in October 2015, earned $3.44 million.

Infosys’ top executives rake in multi-million dollar pay packages. Check out how much Vishal Sikka and others earn

As opposed to founder <a href="http://www.businessinsider.in/Infosys-founder-Narayana-Murthys-beautiful-letter-to-his-daughter-will-warm-your-heart/articleshow/52017019.cms" target="_BLANK￿￿￿￿">N R Narayana </a><a href="http://www.businessinsider.in/Infosys-founder-Narayana-Murthys-beautiful-letter-to-his-daughter-will-warm-your-heart/articleshow/52017019.cms" target="_BLANK￿￿￿￿">Murthy</a>'s philosophy of compassionate capitalism to preserve the spirit of social equity, <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword> Ltd is now entering a phase where remuneration for senior leadership would go to new levels. 
 
<a href="http://www.businessinsider.in/Here-is-how-Vishal-Sikka-has-become-the-man-Infosys-always-wanted/articleshow/51454896.cms" target="_BLANK￿￿￿￿">Vishal Sikka</a>, the first non-founder CEO of Infosys, who was brought in to put the IT giant back on track, has been <a href="http://www.businessinsider.in/Infosys-might-soon-replace-Cognizant-to-become-the-industry-leader/articleshow/52205202.cms" target="_BLANK￿￿￿￿">doing well for the company</a> ever since then. The fortunes of the $9.5 billion company have now been lifted, despite the fact that it was struggling to grow till two years back. In FY16, Infosys revenue rose 9.1% to $9.5 billion, however, it grew 13.3% in constant currency when currency fluctuations are considered. 
 
For these <a href="http://www.businessinsider.in/Infosys-Q4-preview-Despite-seasonal-weakness-Y-o-Y-revenue-growth-and-rise-in-net-profit/articleshow/51827282.cms" target="_BLANK￿￿￿￿">efforts and results</a>, Sikka will take home a new <a href="http://www.businessinsider.in/Infosys-CEO-Vishal-Sikkas-fat-pay-package-to-get-fatter/articleshow/51133586.cms" target="_BLANK￿￿￿￿">overall compensation</a> of $11 million from the current fiscal, including a base salary of $1 million, $3 million in variable pay, $2 million in restricted stock units (RSUs) and another $5 million in stock options based on the company’s performance. This compensation revision has coincided with his tenure being extended by another two years up to 2021. 
 
However, this extension was not agreed upon by some of the promoters, who withdrew from voting on this resolution, while also arguing that his new remuneration was way against the company's long held beliefs. 
 
Sikka has also changed the company's senior leadership compensation, elevating three executive vice presidents (EVPs), Sandeep Dadlani, head of Americas, Ravi Kumar, chief delivery officer and Mohit Joshi, head of financial services, as presidents. As per ET sources, the salaries of these new presidents would touch a new high of nearly $2 million including stocks and long-term incentives. 
 
Also read: <a href="http://www.businessinsider.in/Infosys-salary-hikes/articleshow/51842725.cms" target="_BLANK￿￿￿￿">Infosys employees will get an average salary hike of 6 to 12% this year</a> 
 
Infosys, however, declined from sharing any details of executives' compensation. 
 
<a href="http://media.newindianexpress.com/NarayanaMurthySikka_PTI.jpg/2014/06/14/article2280315.ece/binary/original/NarayanaMurthySikka_PTI.jpg">Image source</a>

You Searched For "Vishal Sikka salary" and got 6 results

Infosys founders Vs board: Here’s what CEO Vishal Sikka said in COO Pravin Rao's defence

BI India Bureau

Murthy says 60%-70% compensation hike to COO grossly unfair to Infosys employees. Read his full letter here

BI India Bureau

IT CEOs take home thousand times a maiden employee’s salary

BI India Bureau

Infosys has less crorepatis now as before, thanks to change in bonus policy

BI India Bureau

Infosys’ top executives rake in multi-million dollar pay packages. Check out how much Vishal Sikka and others earn

BI India Bureau

With Vishal Sikka’ $11 million remuneration, Narayana Murthy's long held beliefs of compassionate capitalism have gone for a toss

BI India Bureau

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