Infosys’ N R Narayana Murthy said on Sunday that the compensation hike to Chief Operating Officer (COO) U B Pravin Rao approved by the board in February was not “proper” and “will likely erode the trust and faith of the employees in the management and the board”.
“The impact of such a decision (compensation hike) will likely erode the trust and faith of the employees in the management and the board,” he said in an email to the news agency here.
Murthy also said that given the current poor governance standards at Infosys, the targets for variable pay may not be adhered to if the board wants to favor a top management person.
“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,” he said.
Murthy said giving nearly 60 per cent to 70 per cent 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 6-8 per cent is improper.
“Giving nearly 60 per cent to 70 per cent 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 per cent to 8 per cent. is, in my opinion, not proper,” he said.