Economy

Infosys promoters to participate in buyback

Infosys promoters to participate in buyback”

In a BSE filing, the company said Mr. Nilekani's office as director shall be subject to retirement by rotation and the remuneration proposed to be paid to him is nil.

The Bengaluru-based IT exporter has been at the heart of a storm over the past month, with founders and board members engaged in a tussle over issues like corporate governance and irregularities in Infosys's acquisition of Israeli firm Panaya. His last drawn remuneration - in FY10, when he was Director - was Rs ₹34 lakh.

"U B Pravin Rao will hold the position of Interim CEO and MD of the company for a term not exceeding five years or until a new CEO and MD is appointed or if his employment as Interim CEO and MD is terminated earlier by either party giving 90 days' notice to the other party in this regard", Infosys said. This could mean a windfall of Rs 2,038.94 crore for the promoter group, if all the shares tendered by them are accepted in the buyback. Pravin will get the same salary, while he was drawing as chief operating officer. As approved by the shareholders vide postal ballot concluded on March 31, 2017, he will continue to receive the remuneration.

Mr. Rao was elevated as the interim CEO and managing director after Vishal Sikka had quit from CEO's post on August 18, citing "continuous attack" from the founders and distractions.

Infosys has roped in executive search firm Egon Zehnder to help in the global search to find Sikka's replacement.

Infosys said Rao will continue to perform his role as the COO and interim CEO, along with that of MD.

The aggregate paid-up equity share capital and free reserves of the company on a standalone and consolidated basis is Rs 63,386 crore and Rs 67,413 crore, respectively as on June 30, 2017.

The company is also seeking the shareholders' consent through a special resolution on the appointment of Nilekani as an additional, non-executive and non-independent Director as decided by the Board on August 24.

The two key players in Infosys changing narrative - Nilekani and Murthy along with families - have offered to tender maximum number of shares in the buyback.

The company is also seeking approval through another resolution for the appointment of Rao as the company's Managing Director for 5 years, with no additional remuneration.

The voting through postal ballot and e-voting will be held from September 8 to October 7 and results will be announced on October 9.



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