Infosys is undergoing transformation on three counts simultaneously to secure a sustainable and secure future, said Infosys chairman R. Seshasayee addressing shareholders at Infosys’ 36th Annual General Meeting.
The first is the business transformation from a traditional IT services to company to an innovation-led software plus services company. Second is the cultural transformation that comes along with the induction of global leadership talent and last is the abrupt transition from a promoter-led board and management to an independent board, he said.
Mr. Seshasayee also said that none of these is easy.
In his address, he also said that this would be his last AGM as chairman as he would retire in May 2018 after attaining the age of 70.
On reports about differences between the board and the founders, he said, “We, in the board, earnestly believe that it is our duty to listen to every shareholder, introspect and further improve our performance or take corrective action.”
On the capital allocation policy announced by the company on April 13 to pay up to ₹13,000 crore to shareholders in FY18, he said the company was in the process of finalising a distribution mechanism that complied with the applicable regulatory requirements.
“As the company has a large global shareholder base and is listed in multiple countries, the manner of distribution to shareholders requires compliance under laws of several jurisdictions,” he said.
‘Visa violation’
The company also agreed to pay $1 million to New York State in the U.S. to settle a visa violation case.
Attorney General Eric T. Schneiderman of New York State announced a $1 million settlement with Infosys Corporation that ‘failed to properly compensate hundreds of workers and to pay applicable taxes, by systematically abusing the United States visa rules in placing foreign workers at client sites in New York State.’
The AG also said that the settlement resolved whistleblower claims that Infosys, while providing outsourcing services, routinely brought foreign IT personnel into New York to perform work in violation of the terms of their visas.
The statement also said that Infosys workers using B-1 visas were doing work that would otherwise have been performed by U.S. citizens or H1-B visa holders, and were paid significantly less than what comparable U.S. workers or H1-B visa holders would have been paid in the same positions.
In a statement, Infosys said the agreement concluded the State of New York’s investigation relating to the amount of taxes it paid in 2010-11 without any criminal or civil charges being filed. “While this investigation centred on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard.”
