Tag Archives: Infosys

Infosys sacks employee for using social media to spread COVID 19

Newsroom24x7 Network

Bengaluru: Infosys on Friday dismissed an employee who had shared a post on social media urging people to spread COVID 19.

Late on Friday night, he was also arrested.

Friday night, Infosys announced:

Infosys has completed its investigation on the social media post by one of its employees and we believe that this is not a case of mistaken identity.

click for tweet

Infosys said on its official Twitter handle: “The social media post by the employee is against Infosys’ code of conduct and its commitment to responsible social sharing. Infosys has a zero tolerance policy towards such acts and has accordingly, terminated the services of the employee.”

Initially, when the issue surfaced Infosys had responded by stating: “We are deeply concerned with an inappropriate post being attributed to an Infosys employee. We strongly reaffirm our commitment to responsible social-sharing. Our preliminary enquiry, and discussions with our employee suggest that this could be a case of a mistaken identity.”

Immediately thereafter, on 26 March, Infosys had also clarified that given the seriousness with which such matters are taken up by Infosys, this issue was being investigated further and the organisation was ready to also assist with any independent investigation. The company went on to reiterate that it would take appropriate action based on its investigation.

In the meanwhile pressure started mounting on the company with the demand that the employee, who was anti-national, must be dismissed.

Mujeeb Mohammed, the sacked Infosys employee who introduced himself on a social media profile as Senior Technology Architect at Infosys, had said on one of his facebook posts: “Let’s join hands, go out and sneeze with open mouth in public. Spread the virus.”

How the Infosys founders and old timers amassed huge wealth

Newsroom24x7 Network

Bengaluru: N R Narayana Murthy is bitter and annoyed as he has gone on record questioning the quality of governance in the Indian IT giant Infosys, the company he founded in the ’80s.

The founder and the single largest shareholder (3.44%) of Infosys, Narayana Murthy has been in the news for his continued differences with the company’s management. Recently, the Infosys Chairman R Seshasayee had stated publicly about the assurance he had received from Murthy to the extent that instead of airing their grievances publicly they should resolve internal matters within the company.

This commitment notwithstanding, Murthy has now questioned the quality of governance in Infosys. The fresh crisis has erupted after the total compensation of Infosys COO U B Pravin Rao was raised this past weekend to Rs. 12.5 crore – a straight hike of 35 per cent. Questioning the “fairness in compensation”, Murthy pointed out that about 24 per cent of the public institutions and 67 per cent of public non-institutions had voted against the resolution for compensation hike.

Last year also a resolution was passed increasing Infosys CEO Vishal Sikka’s salary by about 60 per cent. The former company CFO Rajiv Bansal was also given 30 months’ severance pay when the norm for all others is 3 months.


Newsroom24x7 Insight and a Critique of Infosys 

Narayan Murthy and founders and the old timers at Infosys are also in the line of fire and have been accused of always misleading people about compensation. The charge against them is that they amassed huge wealth in shares of Infosys and salary for them meant nothing.

According to those in knowledgeable circles, the dividend they received each quarter was many times their salary. So they could afford to pay themselves one-third of market rate and then use that as a point of reference to pay all employees about 50 per cent of what they deserved. According to an Infosys associate, There was a stage when Infosys growth had dropped by a few percent, the management had then used the prevailing scenario as an excuse to freeze salary but it did not stop them from hiking dividends by 100 per cent and in the process the newer employees were on the losing end while the  the founders and the old boys club gained handsomely.

A common practice among the old timers has been to ask for the  employee number and a low employee number meant that the employee had become rich merely because he had joined the company during its earlier days.

The main strength of Infosys lay in the fact that they knew what the clients wanted and were professional in dealing with them. They delivered on time, under budget, and offered good quality. These intrinsic qualities were missing in most other Indian companies.

An IT industry veteran remarked: “What cannot be lost track of is that all IT industry founders are rich because they paid meager amounts to the engineers from India and charged their US clients money at the global asking rates. The difference helped them in making their billions whereas the gullible have kept thinking they were some sort of geniuses.”


 

Narayana Murthy has shot a mailer to the Media after the COO’s salary hike stating:

I have lots of affection for Pravin. Let me state you the facts.

I recruited Pravin in 1985 and had nurtured him throughout my stay at Infosys since then.

He had been sidelined. He was not even a member of the Executive Council at Infosys in 2013 when I came back. Kris (Kris Gopalakrishnan, co-founder), Shibu (S D Shibulal, co-founder) and I encouraged him, elevated him to the board, and made him the COO when we recruited Vishal as the CEO. So, this abstention has nothing to do with Pravin.

Those of us who have always stood for fairness in compensation and practiced it, right from the day Infosys was founded, will have to demonstrate it when needed. This is a time when it is needed. Nothing more and nothing less.

I believe in striving towards reducing differences in compensation and equity in a corporation. You may not know that my Infosys salary at the time of the founding of Infosys was just 10% of my salary in my previous job. I ensured that my younger, co-founder colleagues got 20% higher salary over their salaries in their previous job even though I was 7 levels above them in my previous job and was 11 years older than them. I gave them huge equity compensation the like of which has never been replicated in this world. So, this abstention comes from somebody who has walked the talk.

I have always felt that every senior management person of an Indian corporation has to show self-restraint in his or her compensation and perquisites. He or she has to fight for maintaining a reasonable ratio between the lowest salary and the highest salary in a corporation in a poor country like India. The board has to create a climate of opinion for such a fairness by their actions.

This is necessary if we have to make compassionate capitalism acceptable to a majority of Indians who are poor. Without compassionate capitalism, this country cannot create jobs and solve the problem of poverty.

Experts tell me that capitalism may come to an end in the not-so-distant future if the current corporate leaders do not heed this advice in India.

Further, giving nearly 60% to 70% increase in compensation for a top level person (even including performance-based variable pay) when the compensation for most of the employees in the company was increased by just 6% to 8% is, in my opinion, not proper. This is grossly unfair to the majority of the Infosys employees including project managers, delivery managers, analysts, programmers, sales people in the field, entry level engineers, clerks and office boys who are toiling hard to make the company better. The impact of such a decision will likely erode the trust and faith of the employees in the management and the board.

With what conscience can a decent person like Pravin (a man schooled in Infosys values for over 30 years) tell his juniors that they should work hard and make sacrifice to reduce cost and protect margin? I have got so many mails from these people asking whether this resolution is fair. No previous resolution in the history of the company has received such a low approval.

Finally, given the current poor governance standards at Infosys, let us also remember that these targets for variable pay may not be adhered to if the board wants to favour a top management person.”

Subramanian Swamy asks PM to restructure GSTN

Newsroom24x7 Staff

gstnRuling Bharatiya Janata party MP and former Union Minister for Commerce, Law and Justice Subramanian Swamy has written to Prime Minister Narendra Modi urging him to direct the complete stay of all operations of the present constituted Goods and Services Tax Network (GSTN) till it is restructured according to India’s national interest and after security certification by the Home Ministry.

Swamy has said in his letter that he is happy to learn from the media that the Prime Minister had taken a review meeting of Finance Ministry officials on the question of GST/GSTN implementation.

Significantly Newsroom24x7.com took the lead and was the first to bring in focus the irregularities in the implementation of Goods and Services Tax (GST). Newsroom24x7 also underscored constitutional points to emphasise the illegality of entrusting the implementation to GST to GSTN – a Private Limited Company.

Swamy has pointed out in his latter that GSTN is a data processing and tax revenue collecting private company that was never security cleared by the Home Ministry. This is a mandatory requirement, he has emphashised.

Bringing to the notice of the Prime Minister that “some Finance Ministry civil servants as well as the illegally appointed person-designated as the chairman of GSTN are telling the press that the GSTN, as presently constituted, will continue without any hindrance”, Swamy has urged the Prime Minister to order the stay of all operations of the present GSTN as “it is illegal because it never obtained security clearance from the Home Ministry; and it is dominated by not only private institutions that are together holding majority shares in the GSTN Private Limited Company but these private institutions are controlled by foreign shareholders. For example, 65% to 80% of ICICI and HDFC share holdings are owned by foreigners, Swamy has pointed out and asserted that GSTN needs to be restructured as it is foreign controlled.

Another important point Swamy has raised is that the Comptroller and Auditor General of India (CAG) has not been allowed to audit the financial transactions of GSTN that would run into lakhs of crores of rupees once GST is implemented. Hence, he has pointed out that there is a “reckless disregard” to the use of public funds to the benefit of private shareholders and employees. Elaborating further, he has said in his letter that “the CEO of GSTN gets an annual salary of over Rs 10 million, House rent allowance of Rs. 100,000, free car and travel, telephone, wifi network at home, club membership, medical reimbursement, ITA and so onbeside performance linked incentive bonus up to 50% of the basic salary plus DA. Never in the history of any Government has any officer got this level of remuneration.”

Furthermore, it has been pointed out that the Indian Revenue Service Association has unimously resolved that the GSTN is a facility which can be duplicated by the experience of the Finance Ministry’s data processing of Income Tax receipts with much greater experience and efficiency by the CBEC.

Drawing attention to the computer programming supposed to be done by GSTN which has been outsourced to Infosys at a huge payment of Rs. 6000 million of which Rs. 4000 million has already been paid to the company, Swamy has revealed that Minister of State for Finance Jayant Sinha’s wife was made a Director of Infosys just after the contract was signed.

According to Swamy, the data obtained by private parties and foreign shareholders of the indirect tax dues and payment of Indian tax payers as well as the details of travel from the point of manufacturing to the point of sale will help private parties to rig National Stock Exchange outcomes. He has also made the allegation that this is why the decision was taken to create a subsidiary of NSE headed by a crony of the former Finance Minister P. Chidambaram and this subsidiary holds 10% shares of GSTN. This amounts to legitimising the offence of inside trading, he has observed.

Swamy has urged the PM to restructure GSTN with Government owned financial institutions in place of private banks and private companies. The data processing can be handed over to the Central Board of Excise and Customs (CBEC). The continuation of the present system with marginal amendments will be set aside by the Supreme Court on a PIL as unconstitutional and not being in public interest, he has said in his letter.

Click here for more news on GST and GSTN by newsroom24x7.com:

Implementation of GST: Why involve a Private Limited Company in a Sovereign Function?

Implementation of GST by generalists and private players: Discontent brewing among IRS officers

Two arrested in Infosys rape case in Pune

Newsroom24x7 Desk

crime against womenPune : Police has succeeded in making arrests in the rape case which took place within the campus of Infosys in Pune. Two men have been arrested in connection with the rape of a woman in the campus of tech giant Infosys in the western city of Pune. As the victim filed complaint, police moved into swift action and began interrogation. The men were arrested after the 25-year-old woman filed a complaint.

Infosys has expressed deep concern over the mishap and has extended full co-operation to the investigative agencies. Infosys from its own desk is also investigating the alleged incident at their Pune campus involving their partners’ contractual staff. Infosys, India’s second-largest IT firm, said it would take necessary action against the two men. It said in its statement — We have stringent security measures in place on all our campuses and have a zero tolerance policy against sexual harassment which extends to our contractual staff as well.

The police added that the men who have been taken in, worked in the canteen at Infosys Pune campus, as a cleaner and a waiter. Police statement said – The woman works as a cashier at the canteen and had gone to the washroom in the evening when one of the men assaulted her while the other filmed it.