Narayana Murthy wants Infosys to make Panaya report public
In February 2015, Infosys had announced buying New Jersey-based automation technology company Panaya, its second largest acquisition deal, for Rs 1,250 crore in cash.
- Aug 4, 2017,
- Updated Aug 20, 2017 5:02 PM IST
Concerned over governance lapses at Infosys, Co-founder N R Narayana Murthy has reportedly asked the company to make the investigation -conducted on Infosys' acquisitions- report public. Almost three weeks ago, Murthy wrote a letter to the Infosys Board asking them to make a full public disclosure of the report by US law firm Gibson, Dunn and Crutcher.
The law firms Gibson, Dunn & Crutcher were probing the allegations of improprieties in connection with Infosys' acquisitions of Panaya and Skava Systems in 2015. The investigation was ordered after two anonymous letters in February alleged wrongdoing in some of Infosys acquisitions, improper contracting and CEO compensation as well as expenditures.
It was alleged that the merger and acquisitions team acted without securing proper approvals. The law firms also investigated the charges levelled against Infosys CEO Vishal Sikka that he received inappropriate compensation and incurred excessive expenses relating to travel, security and his Palo Alto office. However, Gibson Dunn found no evidence of "inappropriate contracting" in its report. "We found no evidence that the CEO received excessive variable compensation or incurred unreasonable expenses for security, travel and the Palo Alto office," it said.
Earlier on June 23, Infosys came out with the summary of investigation that found no evidence to support any of the allegations. The law firms gave the clean chit to Infosys. However, now Narayana Murthy wants the company to disclose the full report. Murthy has also questioned the board as to why Ritika Suri quit Infosys soon after law firm Gibson, Dunn and Crutcher submitted its report. Ritika Suri was the executive vice-president at Infosys who was a member of the team that acquired Israeli firm Panaya.
The law firm also probed the severance payout made to former CFO Rajiv Bansal, Vishal Sikka's expenses, whistleblowers' complaints to Sebi and the US Securities and Exchange Commission over alleged improprieties in the USD 200-million acquisition of Panaya. In February 2015, Infosys had announced buying New Jersey-based automation technology company Panaya, its second largest acquisition deal, for Rs 1,250 crore in cash.
While releasing the brief report on the probe in June, Infosys said: "The investigation involved interviews of over 50 witnesses in India, the US, and elsewhere, the review of company policies, board minutes, public filings and internal documents, the collection, search and review by Gibson, Dunn attorneys of many thousands of internal emails and attachments, the use of forensic accounting experts to analyse technical and financial information."
This is not the first time when Infosys board is in disagreement with its co-founders. Earlier, ex-Infosys board member Mohandas Pai had asked the board members to explain excessive severance pay made to two top executives. (With inputs from PTI)
Concerned over governance lapses at Infosys, Co-founder N R Narayana Murthy has reportedly asked the company to make the investigation -conducted on Infosys' acquisitions- report public. Almost three weeks ago, Murthy wrote a letter to the Infosys Board asking them to make a full public disclosure of the report by US law firm Gibson, Dunn and Crutcher.
The law firms Gibson, Dunn & Crutcher were probing the allegations of improprieties in connection with Infosys' acquisitions of Panaya and Skava Systems in 2015. The investigation was ordered after two anonymous letters in February alleged wrongdoing in some of Infosys acquisitions, improper contracting and CEO compensation as well as expenditures.
It was alleged that the merger and acquisitions team acted without securing proper approvals. The law firms also investigated the charges levelled against Infosys CEO Vishal Sikka that he received inappropriate compensation and incurred excessive expenses relating to travel, security and his Palo Alto office. However, Gibson Dunn found no evidence of "inappropriate contracting" in its report. "We found no evidence that the CEO received excessive variable compensation or incurred unreasonable expenses for security, travel and the Palo Alto office," it said.
Earlier on June 23, Infosys came out with the summary of investigation that found no evidence to support any of the allegations. The law firms gave the clean chit to Infosys. However, now Narayana Murthy wants the company to disclose the full report. Murthy has also questioned the board as to why Ritika Suri quit Infosys soon after law firm Gibson, Dunn and Crutcher submitted its report. Ritika Suri was the executive vice-president at Infosys who was a member of the team that acquired Israeli firm Panaya.
The law firm also probed the severance payout made to former CFO Rajiv Bansal, Vishal Sikka's expenses, whistleblowers' complaints to Sebi and the US Securities and Exchange Commission over alleged improprieties in the USD 200-million acquisition of Panaya. In February 2015, Infosys had announced buying New Jersey-based automation technology company Panaya, its second largest acquisition deal, for Rs 1,250 crore in cash.
While releasing the brief report on the probe in June, Infosys said: "The investigation involved interviews of over 50 witnesses in India, the US, and elsewhere, the review of company policies, board minutes, public filings and internal documents, the collection, search and review by Gibson, Dunn attorneys of many thousands of internal emails and attachments, the use of forensic accounting experts to analyse technical and financial information."
This is not the first time when Infosys board is in disagreement with its co-founders. Earlier, ex-Infosys board member Mohandas Pai had asked the board members to explain excessive severance pay made to two top executives. (With inputs from PTI)