Narayana Murthy, the anguished co-founder of Infosys, was never tired of saying that Fairness, Accountability and Transparency were foundations of corporate governance. Nobody can take exception to this motherhood statement. It is only fair that Murthy also is tested on this.
These three qualities are required not only of the company and its management, but also of its founders. Murthy has been less than fair in constantly sniping at the Board of Directors. He rightly expressed his concern over excessively liberal payments made or sought to be made to an ex-CFO and an ex-legal counsel. He went overboard in making this the litmus test of corporate governance. The Board and the Chairman were certainly on a weak wicket on this issue. Murthy exhibited his petulance by throwing a public tantrum over this. His call to the Chairman was : "Admit your guilt and quit." He prejudged the issue, converted a possible mistake into guilt, pronounced judgement and wanted his pound of flesh. He was atrociously belligerent.
Murthy was always diffident about inorganic growth. It is therefore not surprising that he cried wolf when Panaya was acquired. $200 Million may be small change for Infosys and Sikka, but it was a princely sum for frugal Murthy. Murthy started casting aspersions on Sikka by referring to association of a SAP executive with Panaya. The acquisition value was decided on the basis of due diligence by respected agencies. When Murthy cried foul, the Board appointed external investigators who found nothing amiss in the Panaya deal. Murthy was not convinced. He did not mind becoming a rebel without a cause.
As a co-founder of the company, Murthy is accountable to fellow-shareholders. Non-stop washing in public of dirty and not-so-dirty linen amounts to abdication of his responsibility towards other stakeholders in the company.
His transparency has been questioned by the Board which in a damning statement has claimed that Murthy desired his demands on appointment of directors be met without attributing the changes to him. This is stealthy secrecy and not trust-worthy transparency.
Murthy is reducing himself to a sanctimonious humbug. No wonder Omkar Goswami felt it necessary to address an open letter to him:
http://economictimes.indiatimes.com/tech/ites/when-you-gotta-go-you-gotta-go-former-infosys-board-member-tells-murthy-in-open-letter/articleshow/60169401.cms
These three qualities are required not only of the company and its management, but also of its founders. Murthy has been less than fair in constantly sniping at the Board of Directors. He rightly expressed his concern over excessively liberal payments made or sought to be made to an ex-CFO and an ex-legal counsel. He went overboard in making this the litmus test of corporate governance. The Board and the Chairman were certainly on a weak wicket on this issue. Murthy exhibited his petulance by throwing a public tantrum over this. His call to the Chairman was : "Admit your guilt and quit." He prejudged the issue, converted a possible mistake into guilt, pronounced judgement and wanted his pound of flesh. He was atrociously belligerent.
Murthy was always diffident about inorganic growth. It is therefore not surprising that he cried wolf when Panaya was acquired. $200 Million may be small change for Infosys and Sikka, but it was a princely sum for frugal Murthy. Murthy started casting aspersions on Sikka by referring to association of a SAP executive with Panaya. The acquisition value was decided on the basis of due diligence by respected agencies. When Murthy cried foul, the Board appointed external investigators who found nothing amiss in the Panaya deal. Murthy was not convinced. He did not mind becoming a rebel without a cause.
As a co-founder of the company, Murthy is accountable to fellow-shareholders. Non-stop washing in public of dirty and not-so-dirty linen amounts to abdication of his responsibility towards other stakeholders in the company.
His transparency has been questioned by the Board which in a damning statement has claimed that Murthy desired his demands on appointment of directors be met without attributing the changes to him. This is stealthy secrecy and not trust-worthy transparency.
Murthy is reducing himself to a sanctimonious humbug. No wonder Omkar Goswami felt it necessary to address an open letter to him:
http://economictimes.indiatimes.com/tech/ites/when-you-gotta-go-you-gotta-go-former-infosys-board-member-tells-murthy-in-open-letter/articleshow/60169401.cms
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