Role of Board of Directors and

Promoters : Case of Infosys Former

CFO Rajiv Bansal and former Board
member, Phaneesh Murthy

Group 1
- Sonal Chhabra (007)
- Abhijit Bhattacharjee (109)
- Nartan Desai (114)
- Sharmistha Ghosh (123)
- Debayan Pal (142)
- Vedant Sao (150)
News from Infosys:
Infosys CEO Vishal Sikka said the company's lower-than-expected
performance in the June quarter -- which spooked the stock markets on Friday
-- was no reflection of his strategy to move the company away from its focus on
lowering costs for clients to one that develops innovative solutions for them.

He said it was an execution failure in certain segments of the business and he

was taking steps to fix those.

The humble performance in the June quarter had forced the company to mark
down its revenue guidance for the full year from April's 11.5-13.5% to 10.5-12%.
In the stock market, Rs 23,000 crore of investor wealth was wiped out in a
single day as a reaction to the modest performance from Infosys.
Vishal Sikka
Vishal Sikka is an Indian American CEO and MD of Infosys.
Prior to joining Infosys, Dr. Vishal Sikka was a member of the Executive
Board of SAP AG and the Global Managing Board, leading all SAP products
and innovation globally.
In his 12 years at SAP, Dr. Sikka led SAPs portfolio including the
breakthrough in-memory platform, SAP HANA, all their applications, cloud
and technology solutions.
He is credited with accelerating SAPs development processes, transforming
its innovation culture and leading several successful product co-creation
initiatives with clients.
He is also the creator of the concept of timeless software, which represents
the renewal of products without disruption to customer environments.
Sikka left the SAP board in May 2014 for "personal reasons", and was
announced as CEO and MD of Infosys on 12 June 2014 .
Vishal Sikka at Infosys
When Sikka arrived, two things were for sure. He was the first technology-
CEO in Infosys history. All his predecessors had evolved in career from tech
geeks to managers of a multi-billion organisation.

The Palo Alto resident, who left India in his teens, cant forget a common
culture is everything in this people business. For sure, Sikka is building an
agile organisation, but disclosures, accountability and governance become
vital when 80% of Infosys resides in India.
5 things to learn from Infosys Vishal Sikka
on work culture
1. Employees can junk formals: The idea is to make them comfortable in the
office.

2. Extending maternity leave is now simpler: Just drop a mail to your manager
or boss, explaining the reasons. There is no need to give any embarrassing
verbal explanations to your boss.

3. Lengthy processes get simplified: If you want to get transferred to a

different location due to some personal reasons, you need not go through any
complex procedure and give long explanations. The company has further
institutionalized family events, including carnivals for employees' children.
5 things to learn from Infosys Vishal Sikka
on work culture (contd)
4. Improving employee engagement: Infosys has asked its employees to be part of the
company's decision-making process: It started motivating its employees to share their
ideas. Sikka came up with Murmuration, aimed at crowd-sourcing ideas from
employees. Over two weeks, 26,000 employees shared more than 2,500 ideas.
Employees voted on the ideas that they felt were most relevant, and ten ideas were
shortlisted for execution.

5. Bridging communication gaps: Sikka started a trend to interact frequently with his
employees via blogs, town halls, InfyRadio, and InfyTV. He gives prompt replies to all
the employees on Yammer , the enterprise communication platform.

The effects are now visible! The mood in Infosys' campus is very different from what
Sikka inherited last year. Infosys' attrition has dropped to 14.2% (June quarter) from
23.4% in the same period last year.
Infosys slow growth
Structural threat over the traditional way of delivering services, and it is
facing tremendous pricing pressures from two aspects: one of them is that
the clients are under tremendous cost pressure, while second could be the
significant growth in their ability to set up captive centres

use cheaper and cheaper people and jam them more into projects faster
and faster as stated by Vishal Sikka could be one of the reasons for slow Q1,
2016

Several leading global companies establishing their own technology centres

in India, outsourcing volumes have taken a significant beating.

Vishal Sikka is focusing on innovation rather than traditional service

growth.
 Gameof Vishal
Changing
Sikka
Ideas
Abandoning 3.0 strategy Acquisitions
bring capabilities & the software leader has made
technologies-consulting or acquisitions worth over $20a0 million,
digital prowess mostly in start-ups since 2012
businessvol in geographies &
verticalsAutomation Work Culture
From people-centric to automated
new-age, youthful, firm
design thinking, artificial
institutionalized family events
intelligence and inatellectual
improving employee engagement
property
New-Renew Strategic Hiring
re-engineering the existing business lean board with only two
devoting resources for new future executive directors for ensuring
businesses, products, platforms and faster decision making
solutions.
Case of Phaneesh Murthy
2011 : Helped iGate 2011-2013 : iGate
2000 : Youngest
purchase Patni shares, revenues
Director of Infosys
Computers quadrupled

2002 : Sacked due to 2013 : Fired due to

2003 : iGate acquired
Sexual Harassment inappropriate sexual
his company
Case demeanour

Has been
considered twice
2002 : Founded his
Payout of $5.7mn for CEO position at
own company
Infosys, favored by
Founder
Case of Rajiv Bansal
10 Feb : Chairman 14 Feb : Chairman
Severance pay of
denied lapse of accepted error of
INR 23cr
governance judgment

Change of
Founder raised a Standard Practice
Severance
concern 3 months
Payment Policy

Board of Directors
Happy with Vishal Concerns about took actions based
Sikka Governance on Founders
concerns
Founder Run to Professional Manager

OLD vs NEW
 The Vision is the difference

Loud, boisterous
and hard-charging Independent Decision
technocrat Maker

0
Acquisitions, expansion
Embracing Newer and Risk Taking Ability.
Technologies
 Points of difference

1. Rajiv Bansals severance

2. David Kennedy

3. Vishal Sikkas compensation

4. Appointment of new directors

5. Conflict with Seshasayee

6. Legacy issues
Stakeholders

Murthy, Mohandas Pai Murthy, Nikelani,

etc Gopalkrishnan

Founders Promoters

CEO &
Investors
Board

JP Morgan,Oppenheimer Sikka, Seshasayee, Kiran

Funds Shaw etc
Thank You