Infosys - Revision history

Jyoti: /* 2017, allegations */

2021-06-15T11:53:56Z

‎2017, allegations

Jyoti: /* High-paid executives */

2020-11-19T14:31:41Z

‎High-paid executives

Jyoti: /* 2017, allegations */

2020-10-11T19:34:24Z

‎2017, allegations

Jyoti: /* PART II: ISSUES, TRENDS */

2019-01-14T23:39:39Z

‎PART II: ISSUES, TRENDS

Jyoti: /* Employees’ benefits and welfare trust */

2018-11-29T14:35:14Z

‎Employees’ benefits and welfare trust

Jyoti: /* PART II: ISSUES, TRENDS */

2018-10-24T12:06:46Z

‎PART II: ISSUES, TRENDS

Pdewan: /* 1981- 2011, in graphics */

2018-10-22T15:41:58Z

‎1981- 2011, in graphics

Pdewan: /* 1981- 2011, in graphics */

2018-10-22T15:41:03Z

‎1981- 2011, in graphics

Pdewan at 15:40, 22 October 2018

2018-10-22T15:40:09Z

Pdewan: /* 2013: Infosys blatantly flouted immigration laws: USA */

2018-10-22T15:30:48Z

‎2013: Infosys blatantly flouted immigration laws: USA

← Older revision		Revision as of 11:53, 15 June 2021
Line 804:		Line 804:

	Law firm Indus Law represented Bansal, and Nishith Desai Associates was Infosys’ counsel.		Law firm Indus Law represented Bansal, and Nishith Desai Associates was Infosys’ counsel.
		+
		+	=2019=
		+	==Whistleblowers allege that finance, sales coerced to dress up books==
		+	[https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL/2019/11/07&entity=Ar02313&sk=817E8FB0&mode=text Shilpa Phadnis, Nov 7, 2019: ''The Times of India'']
		+
		+	[[File: The whistleblower saga- Infosys- September 20, 2019- November 6, 2019.jpg\|The whistleblower saga- Infosys- September 20, 2019- November 6, 2019 <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL/2019/11/07&entity=Ar02313&sk=817E8FB0&mode=text Shilpa Phadnis, Nov 7, 2019: ''The Times of India'']\|frame\|500px]]
		+
		+	Infosys chairman Nandan Nilekani strongly backed his fellow board members on how they handled the anonymous whistleblower complaints, and threw his weight behind the finance team, describing them as “best-in-class”.
		+
		+	“Infosys has very strong processes and even god can’t change the numbers,” Nilekani said in response to a question from an analyst on not recognising reversals of $50 million of upfront payment in a contract, as alleged in the whistleblower letter. He said Infosys has an outstanding finance team, people of the highest integrity, and they are feeling insulted by these accusations. “But I don’t want to bias the investigation,” he clarified at an analyst meet in Bengaluru.
		+
		+	When TOI asked Infosys whether the contract relating to one “FDR” was a reference to its customer First Data Resources, the company said it doesn’t have an additional comment at this time.
		+
		+	Infosys, Nilekani said, takes whistleblower complaints seriously and is committed to ensuring that every aspect of the allegation is thoroughly investigated. “Infosys’s response to the recent whistleblower’s letter adhered to the company’s policy and past practices and complied with all applicable laws and regulations. Contrary to reports that referred otherwise, I can say with certainty that the company acted responsibly in responding to the complaints,” he said.
		+
		+	He added that after the investigation is complete, the company would share a summary of the findings and take corrective actions if warranted. Nilekani’s assurance drove the stock up 2.3% to close at Rs 712 apiece on the BSE.
		+
		+	The whistleblowers had alleged that the CEO compelled the finance and sales teams to dress up their books to show better revenue and profit numbers. After the letter was made public, the Infosys stock crashed over 16% and eroded the company’s market value by about Rs 53,100 crore or $7.5 billion.
		+
		+	Nilekani said he recognises the value and the right of concerned individuals to bring critical issues to the company’s attention. “However, if a company doesn’t have the opportunity to thoroughly investigate any complaint, this right would inappropriately shift from corporate safeguard to becoming a conduit for abuse, allowing an individual to manipulate a company’s operations or reputation without due process. Accordingly, prematurely disclosing complaints without proper due diligence to assess their veracity contradicts good corporate governance and would be a mistake,” he said.
		+
		+	The company said on Wednesday that it has received letters from the secretary of National Financial Reporting Authority (NFRA) and the Registrar of Companies, Karnataka, seeking certain information in connection with the whistleblower complaint. The NSE, BSE and the US SEC are also looking into it.
		+
		+	[[Category:Economy-Industry-Resources\|IINFOSYSINFOSYS
		+	INFOSYS]]
		+	[[Category:India\|IINFOSYSINFOSYS
		+	INFOSYS]]

	=2020=		=2020=

← Older revision		Revision as of 14:31, 19 November 2020
Line 926:		Line 926:

	In the Infosys statement, Ranganath was quoted as saying he planned “to pursue professional opportunities in new areas”. Infosys chairman Nandan Nilekani said over the last 18 years, Ranganath had played a pivotal role in the growth of Infosys.		In the Infosys statement, Ranganath was quoted as saying he planned “to pursue professional opportunities in new areas”. Infosys chairman Nandan Nilekani said over the last 18 years, Ranganath had played a pivotal role in the growth of Infosys.
		+
		+	==2018-19==
		+	[https://timesofindia.indiatimes.com/business/india-business/infosys-crorepatis-more-than-double/articleshow/69420367.cms Shilpa Phadnis, May 21, 2019: ''The Times of India'']
		+
		+
		+	'Crorepati' executives at Infosys more than double
		+
		+	BENGALURU: The number of Infosys executives with compensation above Rs 1 crore rose sharply to 64 in 2018-19, from 28 in the previous year. Many more senior vice-presidents and vice-presidents became part of the crorepati club. A significant part of this increase was on account of the sharp spike in the company’s share price, which raised the value of the stocks that vested during the year.
		+
		+	For many senior executives, time-based stock incentives granted in 2017-18 and 2018-19 vested during the year. In addition, some senior executives have also seen expanded roles and responsibilities, and have seen corresponding increases in their compensation packages. Remuneration includes fixed pay, variable pay, retiral benefits and the perquisite value of stock incentives exercised during the period.
		+
		+	“Our compensation approach provides for competitive salaries for our employees benchmarked with the industry, which includes performance-linked rewards for senior executives with their compensation aligned to shareholder value,” Infosys said in a response to TOI’s query on the larger number of crorepatis.
		+
		+	“A significant part of the increase in remuneration in FY19 compared to FY18 was on account of the increase in perquisite value of stock incentives (the average stock price increased by more than 35% in FY 19 over FY18). This shows a clear alignment of management compensation to shareholders returns,” the company said.
		+
		+	The company, under the 2015 Stock Incentive Compensation Plan, offers share-based benefits to employees to retain talent. The purpose is also to align individual performance to the company’s objectives. Last week, Infosys said it would allocate 50 million shares, valued at Rs 3,700 crore then, to employees based on performance and shareholder value creation. The effort appears to be partly an attempt to rein in the company’s high attrition rates, which are hovering at 17-20%.
		+
		+	Infosys stock options created some of India’s early salaried millionaires. Infosys is said to have created 20,000-rupee millionaires and 500 dollar millionaires in the 1990s and 2000s. It had at one point stopped stock options, but subsequently reintroduced them.
		+
		+	On the latest allocation of 50 million shares, the company said the stock grants would be allocated to employees over a period of seven years. It said the grants would be based on challenging performance criteria that would include relative total shareholder return (TSR) against an industry peer group, relative TSR against domestic and global indices, and operating lead performance metrics such as total revenue, digital revenue growth, and operating margins.
		+
		+	[[Category:Economy-Industry-Resources\|IINFOSYS
		+	INFOSYS]]
		+	[[Category:India\|IINFOSYS
		+	INFOSYS]]

	=HR policies=		=HR policies=

← Older revision		Revision as of 19:34, 11 October 2020
Line 804:		Line 804:

	Law firm Indus Law represented Bansal, and Nishith Desai Associates was Infosys’ counsel.		Law firm Indus Law represented Bansal, and Nishith Desai Associates was Infosys’ counsel.
		+
		+	=2020=
		+	==US SEC clears Infosys in 2019? whistleblower case==
		+	[https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F03%2F25&entity=Ar01416&sk=9A967CDA&mode=text US SEC clears Infosys in whistleblower case, March 25, 2020: ''The Times of India'']
		+
		+	[[File: The case in which Infosys was accused of showing higher revenues and profits, presumably as in 2019.jpg\| The case in which Infosys was accused of showing higher revenues and profits, presumably as in 2019 <br/> From: [https://epaper.timesgroup.com/olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F03%2F25&entity=Ar01416&sk=9A967CDA&mode=text US SEC clears Infosys in whistleblower case, March 25, 2020: ''The Times of India'']\|frame\|500px]]
		+
		+	In a huge relief to Infosys, the company has received a clean chit from US markets regulator Securities & Exchange Commission (SEC) on the whistleblower complaints that roiled it last year (see graphic). The company’s share price gained 12.7% to end at Rs 594 by close of Tuesday’s trade on the BSE.
		+
		+	Infosys said it received a notification from the SEC that the commission had concluded its investigation. The IT company added it does not anticipate any further action by the SEC on this matter. “The company has also responded to all the inquiries received from the Indian regulatory authorities and will continue to cooperate should there be any additional requests for information,” Infosys said in a statement to the stock exchanges.
		+
		+	Anonymous whistleblowers had alleged through two letters, which were widely circulated, that the CEO compelled the finance and sales teams to dress up their books to show higher revenues and profits.
		+
		+	The letters, made public in October, had wiped out over Rs 53,100 crore (more than $7.5 billion) worth of investor wealth.
		+	In January, Infosys had said that the audit committee which investigated the allegations had found no evidence of financial impropriety or executive misconduct. The audit committee had conducted an investigation with the assistance of independent legal counsel Shardul Amarchand Mangaldas and PricewaterhouseCoopers.
		+	The company said the investigation team conducted 128 interviews with 77 persons and identified 46 custodians for collection of relevant documents and electronic data. It also reviewed over 2,10,000 documents from electronic sources and imaged devices, with over 8TB of electronic data processed.
		+
		+	[[Category:Economy-Industry-Resources\|I
		+	INFOSYS]]
		+	[[Category:India\|I
		+	INFOSYS]]

	=PART II: ISSUES, TRENDS=		=PART II: ISSUES, TRENDS=

← Older revision		Revision as of 23:39, 14 January 2019
Line 806:		Line 806:

	=PART II: ISSUES, TRENDS=		=PART II: ISSUES, TRENDS=
		+	=Acquisitions =
		+	==Panaya, Skava: 2015 onwards==
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F14&entity=Ar01315&sk=820CA945&mode=text Shilpa Phadnis & Avik Das, After 3 years, Panaya, Skava continue to weigh on Infy, January 14, 2019: ''The Times of India'']
		+
		+
		+	Infosys’s two controversial acquisitions — Panaya and Skava, which were bought for $340 million — have found no takers. The company had put these two firms on sale, after writing down their value. But now the company appears to be writing off the investment. Beginning 2018, the company started provisioning by way of additional depreciation and amortisation. Currently, the net carrying value of the assets is $206 million.
		+
		+	The two acquisitions have been roiled by controversy almost from the time they were made in 2015. There were charges of excess valuation. There were allegations that some company executives had vested interests in the Panaya acquisition. These were issues that became part of a larger investigation by an international investigating body. That investigation did not find any wrongdoing.
		+
		+	But the controversy was kept alive, partly by continued allegations by co-founder N R Narayana Murthy. Eventually, they became a big part of the reason why then chairman R Seshasayee, CEO Vishal Sikka, and several members of the board resigned.
		+
		+	The turbulence forced co-founder Nandan Nilekani to return to the company as chairman. Under Nilekani and the new CEO, Salil Parekh, Infosys conducted a strategic review and found that Skava and Panaya did not fit into the direction they wanted to take the company. While Sikka wanted to give a product orientation to Infosys, under which Panaya and Skava apparently fitted, Nilekani and Parekh wanted to reinforce Infosys’s services strengths.
		+
		+	“When companies do these acquisitions, they need to do financial, legal and business due diligence to make it a successful investment,” said K R Girish, founder of accounting firm K R Girish and Associates. Panaya had been acquired for $220 million, and Skava for $120 million. In April 2018, Infosys said it expected to sell these assets valued at Rs 2,060 crore ($316 million) and having liabilities of Rs 324 crore ($50 million). In June quarter, the company said it reduced the fair value of Panaya by $39 million and of Skava by $18 million.
		+
		+	But on Friday, at its third quarter results announcement, Parekh said based on the evaluation of proposals received, and negotiations with potential buyers, the company had concluded that it was no longer “highly probable” that the sale would be completed by March. “We now plan to repurpose Skava’s business and refocus on Panaya’s suite of products,” he said.

	=Costs=		=Costs=

← Older revision		Revision as of 14:35, 29 November 2018
Line 956:		Line 956:

	He still closely tracks Infosys, and continues to be in touch with the founders. In June 2014, soon after Vishal Sikka was appointed CEO, Sastry told The Economic Times: “The only thing I wish to happen is for Sikka to move to Bangalore and start living here. Because unless he lives here and starts working from here, it could become a little bit of challenge. No matter how many times he comes, he will always be a visitor.” That today sounds prophetic.		He still closely tracks Infosys, and continues to be in touch with the founders. In June 2014, soon after Vishal Sikka was appointed CEO, Sastry told The Economic Times: “The only thing I wish to happen is for Sikka to move to Bangalore and start living here. Because unless he lives here and starts working from here, it could become a little bit of challenge. No matter how many times he comes, he will always be a visitor.” That today sounds prophetic.
		+
		+	==2018: Bridge programmes double pay==
		+	[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F27&entity=Ar01901&sk=48ABDC97&mode=text Shilpa Phadnis & Avik Das, November 27, 2018: ''The Times of India'']
		+
		+
		+	''Upskill Employees, While Helping Co Cut Attrition, Acquire Future-Ready Workforce''
		+
		+	Infosys is doubling pay packages for employees who successfully complete its new bridge programmes. These help staff to shift from their existing job to one that demands higher skills. The company expects this will also reduce attrition at junior levels — the rate has been high in recent times at over 20% — and give young employees more career options.
		+
		+	Indian IT companies, including TCS and Wipro, are coming up with novel methods to reskill employees in fields like consulting, automation, artificial intelligence and machine learning, and to make them stay for longer durations.
		+
		+	Infosys has developed more than half-a-dozen bridge programmes. The bridge-to-consulting programme, which it started this year, targets young employees who, on average, have spent three years with the company. That’s the time period after which many look for jobs in rival companies for a promotion and a fatter salary, or pursue higher studies, preferably an MBA. The programme aims to move employees to the consulting side of the business, and includes a test and a three-month curriculum. After that, the employee has to spend six months interning in a consulting project and, upon completion, the role changes and the new salary structure kicks in.
		+
		+	“We are focused on creating a flexible internal market place for our talent to grow instead of their leaving to join, say, an MBA course. These programmes provide people with alternative career growth opportunities,” Krish Shankar, head of human resources at Infosys, told TOI.
		+
		+	Infosys said that employees who go through the programmes have seen their salary rise by 80-120%. Some 400 people have been trained in these programmes till date. The company declined to disclose the base salary on which the increases have been provided. But considering that a fresh engineering graduate starts at about Rs 3.5 lakh per annum and assuming an average hike of 10% for three consecutive years, a bridge programme could take the salary close to Rs 9 lakh, similar to what an MBA graduate may receive.
		+
		+	Other bridge programmes include a bridge-to-power programming for those who want to do high-level programming, a bridge-to-design, to full-stack development, and to tech architecture. Power programmers have to take a test and crack a hackathon. For design, the company used to hire people from the National Institute of Design (NID), but now is looking to upskill its own employees as the field is set to grow exponentially with digital technologies. “The demand for these skills will rise as we scale, and these programmes give us flexibility,” said Shankar.
		+
		+	The bridge-to-consulting programme is also part of the company’s effort to focus more on consulting as it looks to ramp up a segment that is dominated by the likes of IBM, Capgemini, Accenture and Deloitte. Clients are today looking to IT vendors for advice on digital transformation and not just have them manage their back-end operations. Asked if Indian companies were late to map careers for their employees, Shankar said firms were doing it. “As the industry changes, demand for people with specific skills is growing,” he said.

	=Profits, revenues, CAGR=		=Profits, revenues, CAGR=

@@ Line 806: / Line 806: @@
 =PART II: ISSUES, TRENDS=
 =High-paid executives=
 ==2014-15: increase in the number of high-paid executives==

@@ Line 50: / Line 50: @@
 [[File:infy0a.jpg| 2008-11 <br/> Chart: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=THE-OLD-ORDER-CHANGES-13062014019005#  The Times of India] |frame|500px]]
-See graphics:
+'''See the following graphics:'''
 Infosys, over the years, 1981-2014

@@ Line 43: / Line 43: @@
 x) ''' Infosys settles sexual harassment lawsuit out of court for $3m ''' [http://www.rediff.com/money/2003/may/11infosys.htm Rediff, PTI, NDTV, Reuters] [http://www.ndtv.com/article/india/why-phaneesh-murthy-had-to-quit-infosys-369646] May 11, 2003 [http://archive.indianexpress.com/news/after-infosys-ltd-igate-sacks-phaneesh-murthy-for-sexual-misconduct/1118916/ Indian Express]
 =PART I: HISTORY, MOSTLY YEAR-WISE=
-==1981- 2011, in graphics==
+=1981- 2011, in graphics=
 [[File: Infosys, over the years, 1981-2014.jpg|Infosys, over the years, 1981-2014; <br/> [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Infosys-founders-looking-to-sell-their-stake-in-09062017001023&Mode=1 The Times of India], June 9, 2017|frame|500px]]

@@ Line 1: / Line 1: @@
-[[File: Infosys, over the years, 1981-2014.jpg|Infosys, over the years, 1981-2014; [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Infosys-founders-looking-to-sell-their-stake-in-09062017001023&Mode=1 The Times of India], June 9, 2017|frame|500px]]
 {| class="wikitable"
@@ Line 45: / Line 43: @@
 x) ''' Infosys settles sexual harassment lawsuit out of court for $3m ''' [http://www.rediff.com/money/2003/may/11infosys.htm Rediff, PTI, NDTV, Reuters] [http://www.ndtv.com/article/india/why-phaneesh-murthy-had-to-quit-infosys-369646] May 11, 2003 [http://archive.indianexpress.com/news/after-infosys-ltd-igate-sacks-phaneesh-murthy-for-sexual-misconduct/1118916/ Indian Express]
 =PART I: HISTORY, MOSTLY YEAR-WISE=
-=The Infosys story=
+==1981- 2011, in graphics==
 '''Rise'''
@@ Line 75: / Line 87: @@
 Will Vishal Sikka, CEO, w.e.f October 2014 be able to resurrect Infosys?
 ==The beginnings==
 [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Infosys-founders-looking-to-sell-their-stake-in-09062017001023&Mode=1  Asha Rai & Boby Kurian, Infosys founders looking to sell their stake in company, June 9, 2017: The Times of India]

@@ Line 196: / Line 196: @@
 This loss of momentum and ranking put the company at risk of losing mindshare among customers in the long run.
-==2013:  Infosys blatantly flouted immigration laws: USA==
+=2013:  Infosys blatantly flouted immigration laws: USA=
 Federal prosecutors have alleged that IT major Infosys indulged in blatant violation of immigration laws by not only bringing its employee inside the country on a visa which does not permit work, but also issuing specific directions to its workers to mislead the immigration officials on their point of entry on their nature of work.
@@ Line 208: / Line 208: @@
 Palmer said he had turned down an early settlement offer from Infosys, because it would not have allowed him to continue cooperating with federal investigators.
 "They wanted to buy my silence, and I wouldn?t do it," he said. "I never did it for the money. I did it because they were violating the law."
 =June 2013: Murthy returns=
 Shibu, as he is known popularly, was sidelined from the decision-making process, even though he continued to be the public face of the company. "He would often say 'go ask Murthy'," it was said