Spend less than what you earn: Narayana Murthy's message to CEOs

Mail Today Bureau   New Delhi     Last Updated: August 16, 2017  | 00:00 IST
Spend less than what you earn: Narayana Murthy's message to CEOs

Infosys co-founder N R Narayana Murthy on Tuesday said top executives, including CEOs should go in for austerity in order to reduce the cost of running companies so that more growth can take place.

"I would say that it is extremely important to spend less than what you earn, ideally. That means everybody, starting from the Chairman and CEO to a janitor will have to demonstrate austerity, will have to demonstrate simplicity, to scale up companies' growth.''

Murthy pointed out that a company will have to get the best value for money for every paisa it spends. He was talking to reporters on the sidelines of an event to inaugurate the Synergetic Security operation Centre of SISA, a cyber security company.

In June this year, Murthy had said IT companies can protect the jobs of youngsters if senior executives take pay cuts. He also urged employees of companies to ask questions, including how to reduce time and improve quality of whatever they are doing, which would ultimately result in companies increasing their revenues.

"There are a lot of smart leaders in the industry, but I have no doubt at all that they are all well-intentioned people and they can find solutions," he had said.

Murthy also said this is not for the first time that the industry has faced the layoff problem and hence there should not be any extreme anxiety as the industry had dealt the issue and found solutions then.

"Once you start doing it, then revenues will increase significantly and cost will be under control. That is what I would say it is the most important thing,'' he explained. Murthy also said scaling up of any company depends on technology because it reduced costs.

Murthy's observations come in the backdrop of the ongoing rift between the Infosys founders and the company's board which had flared up with Murthy raising questions about the huge severance package of Rs 23 crore paid to the company's former CFO Rajiv Bansal.

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