Tuesday, April 4, 2017

Mohandas Pai and V Balakrishnan hits out at Infosys COO U B Pravin Rao salary hike

Former Infosys member Mohandas Pai and V Balakrishnan hits out at COO U B Pravin Rao salary hike. Mohandas Pai said the the salary in this case is spectacular but performance is not.

Also read: My team manager is putting additional pressure on me said Infosys techie Rasila Raju

Recently said that it would raise COO U B Pravin Rao's salary to include a fixed compensation of Rs 4.62 crore and a variable compensation of Rs 3.88 crore per annum, apart from stock compensation worth Rs 4 crore based on performance.

He said, I totally agree with Murthy that it was not proper. We should have Indian norm for compensation; we can't follow American norm, we (Infosys) are not an American company. He said, at a time when the salary for entry level software engineers had not been raised in the IT industry in India for the past seven years, it is totally wrong to hike the compensation for top-level executives.

He said, The salary of Chief Operating Officer (of Infosys) three-four years ago was Rs 3.5 crore or Rs 4 crore. Now, it has gone up to Rs 12 crore. I think unless people at the bottom (software engineers) get good, regular hike, paying people at the top for doing nothing...for long period of time is totally wrong. I think the Board was misguided. You hired a CEO (Vishal Sikka). You are forced by the CEO to increase (his) salary from USD 7 million to 11 million. There was no justification. When you see CEO getting so much, then COO will say: what about me? I cannot be paid one-tenth of what CEO is being paid.

Mohandas Pai also said, You can't compare compensation levels with that in the US because employees (of Indian companies) are all here. A software engineer is paid Rs 3.5 lakh. A person who is COO gets paid Rs 12 crore or Rs 13 crore. 400 times. You have not raised the software engineer's salary for 7 years.

Infosys ex-CFO V Balakrishnan said, Pay hike for top Infosys executive terrible. He said, the golden standards of governance and value system that Infosys was known for is being decimated under the current leadership. I think Infosys is a golden standard in terms of governance, disclosure and value system. I think it is being decimated under the current leadership. I think the board is not acting the way it should be.

He said, I tell all subordinates that you have to sacrifice and you have to make sure your wage increase will be less, we have to cut costs while I will take 40-50 per cent increase (in compensation hike), I think it is terrible for any leadership to do. 



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