16 June, 2013

The curious case of Infosys and its Founder


I had the privilege of attending the 32nd Annual General Meeting of Infosys at Bangalore yesterday. As usual, the extremely well-orchestrated event was attended by the Board, the Executive Council and a spectrum of share-holders.

Now, back to the headline grabbing agenda item of the AGM- The reappointment of NRN as a Director thereby paving the way to formally become the Executive Chairman of Infosys. The voices that supported the move certainly outnumbered the ones that wanted to reject the appointment.

NRN has been stating that the move from the Board offering him a seat back at the helm was both unexpected and unusual. Would have loved to hear something more. That it was unacceptable as well.

There were rich references to the Indian ethos; it is the duty of the father to do a course correction when the kids need help. Yes, it is the duty of the father to advise the kids and be a MENTOR. When the son fears failure in exams, he can ask his father to spend some time with him to understand the subject better. You just can’t ask your father to appear in the Board Exams for you. I am afraid at this rate, NRN may be asked to code as well before his five year term ends.

As an accountant, I always believe that debits and credits always match. What is with the Airtel video equivalent annual remuneration? Is the work of turning around a $ 7 Bn enterprise trivial or is this charity at its peak. I am sure a lot of us know that there is no such thing as a A Free Lunch.

As far as my assessment goes, it could well be the cost of guilt of not creating a true leader before the first call of retirement beckoned. By not letting the next gen to take decision and make mistakes and so that they could learn faster, he has taken it on him to execute the course correction all by himself again.

I am afraid history will repeat itself in a few years. These five years should be spent on nurturing leaders and not create a coterie again. We know that he is the best man to do the job, but again it looks like Infosys and its shareholders would be happy with fish for dinner and not the fishing rod that will be able to feed them for a lifetime. I am afraid this knee jerk reaction will end up creating an eternal Re 1 pension for the founder.

And if there is an emotional connect that drives him back to Infy which he claims rightfully as his middle child, why would his son also have to tag along at Re 1 per annum. Or Is it a case where the third child bears the burden of the failure of an elder sibling? This is one Bollywood potboiler waiting to unfold in all its splendor over the next five years.


Disclosure: I just hold a single share of Infosys and that is for two reasons. One- it is like a memento of the institution where I spent well over five years of my professional life. The second is a little less sentimental; I get a lavish wedding reception-like snacks once a year for the rest of my life.

6 comments:

Sravan said...

Food for thought...or as u put it..A Fish for thought...

Anonymous said...

Maybe NRN is the best man for the job? If so, I see no reason why he shouldn't come back. Maybe he might even do a stellar job of resurrecting the company. Michael Dell and Howard Schultz are good examples of Founder-CEOs getting back and adding value. Sometimes you need the fish on the plate first before you get the energy to pick up the fishing rod? :)

Arun Sriram said...

He is the best man, no doubt about it. But he can add more value by guiding than merely leading. There is a difference between the two. Yes, even Steve Jobs came back. And if I am not wrong, post his second innings, Apple is only suffering more. Dell has gone private because they went back to focus only their bread and butter business and they are now struggling to genuinely innovate. At best they are rebuilding.In my opinion, this is not the way to 'build tomorrow's enterprise' as Infosys tagline goes but a momentary staying on par with the pack strategy.

VVK said...

loved your last para. 1 is the new infinite for immortals to get down the level of mortals. this is no one upmanship!

Sathya Pramod said...

Like your disclosure....

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