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Infosys Saga: The Twists & Turns

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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 Niliekani as non-Executive Chairman on Thursday….reports Asian Lite News

Among the issues red flagged by the promoters, especially N.R. 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: AInfosysAterms 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.