Erosion in corporate governance, huge salaries to top executives and costly acquisition (Panaya) were some of the issues flagged by the founders.

The Infosys saga A timeline of events leading to Nandan Nilekanis return to the IT giantImage source: PTI
Atom Infosys Friday, August 25, 2017 - 09:59

Software major Infosys has gone through a churn over the months, as its boardroom battles over a spate of issues led to the exit of its first non-founder executive Vishal Sikka on August 18 and the return of its co-founder Nandan Nilekani as non-Executive Chairman on Thursday.

Among the issues flagged by the promoters, especially NR Narayana Murthy, were erosion in corporate governance, huge salaries to top executives, costly acquisition (Panaya) and a large severance package to an ex-CFO.

February 9: Murthy expresses concern over governance issues in the Board.

February 13: Board denies rift with Murthy on governance issues, defends Sikka, acquisition of Panaya and high severance pay to ex-CFO Rajiv Bansal and General Counsel David Kennedy.

February 20: Board refutes an anonymous whistleblower's charges on Panaya deal in February 2015.

February 21: Sikka attacks media for targeting company, employees and him to the point of harassment.

February 23: Board hikes salary of Chief Operating Officer Pravin Rao, elevated as Interim CFO and Managing Director on August Friday till March 31, 2018.

April 13: Independent Director Ravi Venkatesan appointed as Board Co-Chairman and lowers revenue guidance for fiscal 2018.

June 1: Murthy tells IT honchos to take less salary and avoid layoffs.

June 13: Infosys terms media coverage, activist investors as risk factors.

June 24: co-founders keep away from stormy Annual General Meeting, (AGM).

July 17: Murthy regrets quitting as Infosys Chairman in June 2014.

August 18: Sikka resigns as CEO & MD, appointed Executive Vice-Chairman till March 31, 2018, Board blames Murthy for Sikka's exit, appoints Rao as Interim CEO and MD, company's stock crashes 10 per cent on BSE.

August 19: Announces buyback of 11.3 crore shares at Rs.1,150 each.

August 24: Board appoints co-founder Nandan Nilekani as non-Executive Director, Board Chairman R. Seshasayee and Co-Chairman Ravi Venkatesan, Sikka and two Directors Jeffery Lehman and John Etchemandy, resign.

Topic tags,
Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.