'Shadow of founders tends to loom over Boards, incumbents'

New Delhi: The public spat between Infosys founders and its Board has triggered a debate whether it is possible for people to distance themselves from the company they create, with industry experts saying it tends to be a tightrope walk.

Industry veteran Ashok Soota -- who co-founded mid-sized IT firm Mindtree -- believes founders can play an important role in providing inputs to the management like any other shareholder.

"Any shareholder has the right to comment on governance issues and we are making it a big founder versus Executive issue... As a shareholder myself, (I think) its best that the company continues on its strategic path," Soota said.

He added that the Chairman of the Board and the CEO, once they receive such inputs, should treat it as shareholder feedback and course correct for future.

Soota, who had co-founded Mindtree and was its executive chairman, quit the firm in 2011. He went on to set up another IT firm, Happiest Minds.

Infosys founders, who along with their family members own 12.75 per cent in the company, have raised concerns on issues like hefty CEO compensation, severance packages doled out to former executives and have alleged governance lapses.

The company has, however, maintained that there have been no such lapses. The Board also held a press briefing to give point-by-point clarification on the issues raised.

Brokerages too have expressed confidence in the company's management. Edelweiss Securities, in a report, said it does not perceive any structural issues with Infosys.

Motilal Oswal said it believes that Infosys is investing in all the right areas to regain and sustain its growth leadership, compounded by industry-leading margins.

Industry doyen Pramod Bhasin -- who started Genpact as GE Capital's back office operations in India -- said he stepped away from the company's activities, including the Board as part of the succession planning at the organisation.

"In Genpact, with regard to succession planning we did, I as a founder stepped away from activities including the Board as the shadow of founders who build the company, tends to loom over the Board and the incumbents extensively. If you see the likes of Jack Welch (GE's former CEO), they have moved away from the Board and he was judicious about it," he told PTI.

He, however, declined to make any comments specific to the differences between Infosys founders and the Board.

Genpact was carved out of GE's in-house BPO division and is now one of the world's largest BPO firms. Bhasin himself stepped down as CEO of Genpact in 2011 to make way for the NV Tygarajan.