US visa probe saddens Infy's Murthy

“As I leave the board, I feel sad that Infosys, voted most often as India’s most respected company during the period 1995-2011, has been issued a subpoena by a grand jury in the US on the B-1 visa issue. The issue will be decided on its merits in due course,” Murthy told the shareholders at the 30th annual general meeting (AGM) here.
Though a district court in Texas May 23 served the legal notice to the company on the alleged violation of visa rules, the management decided to contest it and clarify its position to clear the air.

Embracing meritocracy

Asserting that the blue chip company would strengthen its well-acclaimed and much respected focus on embracing meritocracy and transparency, Murthy said during the last three decades he had never compromised on values, and advocated openness in discussions on the importance of values at every level in the organisation.

“This is the path I have walked during the last 30 years at Infosys with much peace of mind and a clear conscience. I never waffled and remained unambiguous about practising our values, punishing the guilty and being firm in every decision-making based on our values,” Murthy said.

In a regulatory filing, the company admitted that any action by the US government against it in this regard would seriously affect its business in the North America market, which accounts for about 60 percent of its export revenue.

The US immigration authorities issues B1 visas for short-term visits to attend business seminars and restrict employees from engaging in gainful employment during their stay. The global software major has about 10,000 of its software engineers on H-1B visas and 2-200 on L1 working in the US.

Innovation head resigns

Meanwhile, in yet another resignation at senior level at the country’s second largest software exporter Infosys, Subhash Dhar, Head of Innovation, has decided to quit.
“Subhash Dhar has decided to leave the company. He has said he is looking at a start-up, of becoming an entrepreneur,” Narayana Murthy said.

Dhar was serving as Senior Vice President & Corporate Head (Innovations) and Group Head of Sales & Marketing. He is also a member of the Executive Council at Infosys.
Dhar joins the list of names like TV Mohandas Pai who quit in the last few months, while K Dinesh has retired.

In April, Infosys’s HR Head and veteran Pai announced his intention to quit the board and executive positions from June 11. Co-founder Dinesh has retired by rotation at the AGM today.

He had expressed his intention not to seek re-appointment. The company is undergoing a series of changes in terms of structure. Murthy passes on the baton to K V Kamath, who will be non-executive chairman, and Kris Gopalakrishnan will take charge as the co-chairman. The new set of leaders will assume charge on August 21. Current Chief Operating Officer S D Shibulal will also take over as the CEO and MD.

To shareholders query on why Infosys was not inducting more women on the board, Narayana Murthy said that the company always favoured giving equal opportunities to everyone.

To the same question, raised by reporters, Kamath said that in a merit-driven organisation, you are always bound to find a balance.

Board inducts 4 new members

Bangalore, dhns: Infosys Technologies, on Saturday, inducted four new members to its board, including current Chief Financial Officer V Balakrishnan.

“The company has appointed V Balakrishnan, B G Srinivas, Ashok Vemuri and Ann Fudge to the Board,” Infosys Chairman N R Narayana Murthy told reporters here.

While Balakrishnan is currently serving as the Chief Financial Officer, Vemuri is the Senior Vice President and Global Head (Banking & Capital Markets) at the firm.

Srinivas is the Senior Vice President and Member of the Executive Council at Infosys.
Ann Fudge is the former Chairman and CEO of Young & Rubicam Brands, a global network of marketing communications companies. She is also on the board of GE, Novartis and Unilever.

Narayana Murthy said “I am very happy that three outstanding Infoscions are joining the board. I have worked with all the three closely and have benefitted immensely from their wisdom. My congratulations to them. I am confident that they will take our company to even greater heights.”