In a letter to media, Infosys founder, Narayan Murthy condemned Chief Operating Officer (COO) Pravin Rao for accepting unfair pay hike of nearly 60% to 70%. He says increase in salary is unjust as compared to the rest of the employees
Murthy writes in a mail, “Giving nearly 60 to 70 per cent 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 per cent is, in my opinion, not proper.” He further writes, “The impact of such a decision will likely erode the trust and faith of the employees in the management and the board.”
He begins the letter by explaining how he inducted Pravin himself and nurtured him along the way. He also revealed how Pravin got elevated to COO position. Further, he writes that he had always believed in working towards reducing compensation and equity differences in the corporation. Stating his own example, he highlights that while laying foundation of Infosys his salary was just 10% of his previous job salary.
Talking about senior management in an organization, he says they should practice self-restraint in accepting unjust compensation.
“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 fairness by their actions,” Murthy writes in a mail.
Narayan Murthy also explains the concept of compassionate capitalism, which India needs at present to solve problems related to jobs and poverty. The present resolution of unjust pay hike of Infosys COO has received lowest approval in the history of the company.
The open letter by Narayan Murthy has triggered debate in Media. The social Media contains mixed reactions and opinions. To know, what this ripple effect would bring, we all need to wait and watch.