fosys co-founder NR Narayana Murthy, who is set to retire from the company in August next year, saysICICI Bank chairman KV Kamath is qualified enough to take on his role as Infosys’ non-executive chairman, but the decision of the nominations committee will be final. He says IT expertise is not required to be a non-executive chairman of the software company. In an interview with ET NOW, Mr Narayana Murthy also talks about the SKS Microfinance controversy and his thoughts as an investor. Excerpts:
As Infosys founders retire, how challenging is the transition to the next crop of leaders?
The key challenge will be to ensure that one of the founders should be present when the CEO position goes to a non-founder to ensure value systems remain intact. That responsibility will rest on the shoulders of one of the founders. In any case, the CEO will be an internal candidate and there is a lot of management bandwidth.
Will you be more comfortable with an insider being selected for the chairman’s post?
My being comfortable does not matter. What is important is the executive management must be comfortable with the leader and vice versa. I am sure the nominations committee will select such a person who the management is comfortable with.
KV Kamath has been on the board of Infosys as well. Do you see him as someone who could step into your shoes?
KV Kamath is an extraordinary person. I have seen him transform ICICI from a development financing institution to a universal bank. He is clearly one of the most dynamic business leaders of the country. But again, it is for the nominations committee to decide on who the next chairman should be, I shouldn’t be pre-empting its choice. Therefore, though I have unqualified respect and admiration for KV Kamath, the final decision should be left to the nominations committee.
But you do feel he has the requisite qualifications and pedigree for this job?
There is absolutely no doubt about it.
Will the IT expertise of the person selected as chairman matter?
The position of chairman is to ensure the board performs effectively unless it’s an executive chairman who will be involved with day-to-day functioning. Therefore, I am not too sure if we require an IT expert to be a non-executive chairman.
Will the name selected by the nominations committee be binding?
Yes. I think so. The nominations committee is responsible for selecting the next chairman and, therefore, its suggestion will be binding.
On another note, a US senator referred to Indian IT companies as chop shops. Did the remark dismay you?
If somebody who knew what we were doing or had an industry view or were a respected analyst, we would be worried. But somebody who has no idea what this industry is all about and the kind of infrastructure we have built here and in 70 other countries, makes such a statement, we should be charitable to such a person. All of us, when we get older, tend to do things that are not the best. Once in a while our logic lapses, our memory lapses, we tend to say things we don’t mean. So I’d say let’s look at it in that spirit.
At the height of the SKS Microfinance controversy your office clarified you had a chat with Vikram Akula and advised the company to be fair and transparent. As a champion of corporate governance are you disappointed by the standards of corporate governance in that company, given that you have made an investment in SKS?
I am the chairman of the advisory board which is yet to be formed. Now, advisory board is a council that meets once or twice a year. It is a council that will provide advice when asked for, it’s not a council that goes and performs line duties unlike the statutory board which is responsible for the governance of the company. Because I am not on the statutory board, I do not know the details of what has happened. All that I told Vikram, like I tell my colleagues at Infosys, was to be open, honest and fair in all transactions dealing with everyone of the stakeholders.
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