Narayana Murthy, the Co-Founder of Infosys said that it was completely unfair about the compensation hike to the COO of Infosys and it will erode trust and faith of the employees.
Co-founder of Infosys N.R. Narayana Murthy said that the compensation hike to the U.B. Pravin Rao who is the chief operating officer of Infosys, approved by the board was not “ proper “and “will likely erode the trust and faith of the employees in the management and the board”.
Mr. Murthy said that a huge hike in the compensation of the chief executive officer from 60% to 70% when compared to employees there was just 6% to 8% hike in their salaries was not proper in my opinion.
He also added that it was completely unfair to the employees who are working as Delivery managers, Project managers, Programmers, Analysts, Entry level engineers, sales employees, clerks and office boys are striving hard for the betterment of the company.
Narayana said that he has lots of affection towards Pravin and recruited him in 1985, and encouraged him throughout his stay in the company.
He also stated that Pravin was not even a member of the Executive Council at Infosys in 2013. When Vishal was recruited as the CEO of the company, elevated Pravin as the board member and made him as COO.
He said that he always believed in endeavoring towards reducing differences in compensation and equity in a corporation.
He also added that at the time of founding the company his salary was just 10 percent of the previous job salary. The co-founder and his colleagues got 20 per cent higher pay over their salaries in the previous job. Moreover, he was seven levels above them in the previous job and was 11 years older than them, even though he had given equity in the compensation to the employees which would never been replicated in this world.
He said, that every senior management of any Indian corporation must show self-restrain towards their compensations and has to fight for the reasonable ratio in a corporation between the highest and lowest salary.
“The board has to provide a climate of opinion for such fairness by their actions”, he said.
He also added that it is mandatory to make a compassionate capitalism that is acceptable to the majority of the Indians who are poor, without any compassionate the country cannot create the employment opportunities and there would be a problem of poverty.