Reports about the relationship between the Infosys board and founders gone sour have been going around for some time now. Earlier this year, founders led by Narayan Murthy were said to be unhappy with the board's decision to offer a high variable pay to CEO Vishal Sikka. It was among the many reasons that were floating online indicating trouble in Infosys' paradise.
Now, a report in The Times of India reveals that Sikka has been given only 46 percent in variable pay of his target compensation for the year 2016-17. It doesn't hints at the modest performance of the company. Also, it also reminds us of the previous reports about founders being miffed with the board and Sikka over steep hikes.
According to the report, Sikka has a fixed compensation of 3 million and received $3.68 million of his target variable compensation of $8 million, making the take home amount of $6.68 million. This is said to be lower than what he drew in 2015-16 - $7.45 million. His salary is said to have dropped by 40 percent. In the past Sikka and the board have said that the increase in compensation has only been the variable amount.
Previously, Chairman R Seshasayee had clarified that from the time Sikka was appointed as the chief, his fixed component has gone down. He added that the compensation is tied to high levels of target achievements. Infosys chief Vishal Sikka along with Seshasayee had defended governance and said there's 'no battle' between the board and founders.