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Narayana Murthy criticises Infosys COO’s salary hike

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Bengaluru, April 2, 2017: Infosys founder N.R. Narayana Murthy on Sunday termed the board-approved compensation hike for Chief Operating Officer U.B. Pravin Rao as “not proper” and said it will “erode the trust and faith of the employees in the management and the board”.

In an email, he also said that given the current poor governance standards at Infosys, the targets for variable pay may not be adhered to if the board wants to favor a top management person.

Murthy said giving nearly 60 per cent 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 6-8 per cent is “in my opinion, not proper”.

“This is grossly unfair to the majority of the Infosys employees including project managers, delivery managers, analysts, programmers, sales people in the field, entry level engineers, clerks and office boys who are toiling hard to make the company better. The impact of such a decision will likely erode the trust and faith of the employees in the management and the board.

“With what conscience, can a decent person like Pravin (a man schooled in Infosys values for over 30 years) tell his juniors that they should work hard and make sacrifice to reduce cost and protect margin? I have got so many mails from these people asking whether this resolution is fair. No previous resolution in the history of the company has received such a low approval,” he added.

Murthy, however, said he has lots of affection for him. “I recruited Pravin in 1985 and had nurtured him throughout my stay at Infosys since then. He had been sidelined. He was not even a member of the Executive Council at Infosys in 2013 when I came back. Kris, Shibu and I encouraged him, elevated him to the board, and made him the COO when we recruited Vishal as the CEO. So, this abstention has nothing to do with Pravin,” he said.

“Those of us who have always stood for fairness in compensation and practised it, right from the day Infosys was founded, will have to demonstrate it when needed. This is a time when it is needed. Nothing more and nothing less,” he wrote.

Murthy said he always believed in striving towards reducing differences in compensation and equity in a corporation.

“You may not know that my Infosys salary at the time of the founding of Infosys was just 10 per cent of my salary in my previous job. I ensured that my younger, co-founder colleagues got 20 per cent higher salary over their salaries in their previous job even though I was 7 levels above them in my previous job and was 11 years older than them.

“I gave them huge equity compensation the like of which has never been replicated in this world. So, this abstention comes from somebody who has walked the talk,” he said.

Murthy said he 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,” he added.

“This is necessary if we have to make compassionate capitalism acceptable to a majority of Indians who are poor. Without compassionate capitalism, this country cannot create jobs and solve the problem of poverty. Experts tell me that capitalism may come to an end in the not-so-distant future if the current corporate leaders do not heed this advice in India,” he said.

IANS

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Amalgamation of LVB with DBS Bank completed, Rs 2,500 cr fund injection soon

DBS Bank India Limited is first among the large foreign banks in India to start operating as a wholly owned, locally incorporated subsidiary of a leading global bank.

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Lakshmi Vilas Bank

New Delhi, Nov 30 : Lakshmi Vilas Bank (LVB) is now amalgamated with DBS Bank India Limited (DBIL), the wholly owned subsidiary of Singapore-based DBS Group Holdings Ltd.

In a statement on Monday, DBS Bank said that the scheme of amalgamation is under the special powers of the Government of India and Reserve Bank of India under Section 45 of the Banking Regulation Act, 1949, India, and has come into effect on November 27, 2020.

It added that the amalgamation provides stability and better prospects to LVB’s depositors, customers and employees following a period of uncertainty. The moratorium imposed on LVB was lifted from November 27, 2020 and banking services were restored immediately with all branches, digital channels and ATMs functioning as usual.

LVB customers can continue to access all banking services. The interest rates on savings bank accounts and fixed deposits are governed by the rates offered by the erstwhile LVB till further notice. All LVB employees will continue in service and are now employees of DBIL on the same terms and conditions of service as under LVB.

The DBS team is working closely with LVB colleagues to integrate LVB’s systems and network into DBS over the coming months, the statement said.

Once the integration is complete, customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services which have won multiple global accolades, it added.

Moreover, the bank asserted that it is well-capitalised and its capital adequacy ratios (CAR) will remain above regulatory requirements even after the amalgamation.

Additionally, the DBS Group will inject Rs 2,500 crore into DBIL to support the amalgamation and for future growth. This will be fully funded from DBS Group’s existing resources.

DBS has been in India since 1994 and converted its India operations to a wholly owned subsidiary (DBIL) in March 2019.

Surojit Shome, CEO of DBS Bank India Limited, said, “The amalgamation of LVB has enabled us to provide stability to LVB’s depositors and employees. It also gives us access to a larger set of customers and cities where we do not currently have a presence. We look forward to working with our new colleagues towards being a strong banking partner to LVB’s clients.”

On November 27, the 94-year-old Karur-headquartered LVB cease to exist officially as it was amalgamated with DBS Bank India.

As part of the moratorium announced by RBI on November 17, withdrawal of deposits from LVB were capped at Rs 25,000 and this will be taken off from November 27 onwards.

On its part, the Central government notified in the official gazette that the Lakshmi Vilas Bank Limited (Amalgamation with DBS Bank India Limited) Scheme, 2020 will come into force on November 27.

As announced earlier by Reserve Bank of India (RBI) in its draft scheme of amalgamation, the Central government had notified: “On and from the appointed date, the entire amount of the paid-up share capital and reserves and surplus, including the balances in the shares or securities premium account of the transferor bank, shall stand written off.”

DBS Bank India Limited is first among the large foreign banks in India to start operating as a wholly owned, locally incorporated subsidiary of a leading global bank.

In 2016, DBS launched India’s first, mobile-only bank-digibank, which now has over 2.6 million customers.

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UK bans installation of Huawei 5G telecom gear from Sep 2021

The US Federal Communications Commission (FCC) designated Chinese telecom companies, Huawei and ZTE, as national security risks to America’s communications networks.

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Huawei Technologies

London: The UK government announced on Monday that the Chinese telecom giant Huawei will not be able to install its 5G equipments in the country from September 2021.

The Department for Digital, Culture, Media and Sport said that as per its earlier decision, the UK carriers will no longer be able to install Huawei equipment beginning September 2021.

The UK government has laid out a roadmap for removing all telecoms equipment made by “high risk vendors,” including Huawei, from the country’s 5G network by 2027, reports CNET.

In July this year, the UK government had announced a ban on the purchase of new Huawei kits for 5G from next year and said that the Chinese telecom giant’s equipment will be completely removed from 5G networks by the end of 2027.

The telecoms operators have seven years to remove its existing technology from their 5G infrastructure at an expected cost of 2 billion pounds.

The decision came following new advice produced by the National Cyber Security Centre (NCSC) on the impact of US sanctions against the telecommunications vendor.

The US Federal Communications Commission (FCC) designated Chinese telecom companies, Huawei and ZTE, as national security risks to America’s communications networks.

In a U-turn, the UK government that earlier allowed Huawei to sell its 5G technology in the country, signalled a tougher stand against the Chinese telecom giant.

Huawei called the decision “bad news for anyone in the UK with a mobile phone”.

Struggling to keep its consumer business afloat in the wake of the US sanctions, Huawei this month announced to sell off its Honor smartphone business assets to China-based Shenzhen Zhixin New Information Technology Co Ltd.

The company said that the sale — which could be around $15 billion according to multiple reports — will help Honor’s channel sellers and suppliers make it through this difficult time.

Honor smartphones have been hit by US sanctions that prevent Huawei from doing business with the US companies.

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Amazon Quiz Answers, November 30 2020: Answer and win Rs 15,000 Amazon Pay Balance

Check out the questions and answers for today’s Amazon quiz to bag the Rs 15,000 Amazon Pay Balance.

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Amazon

Amazon India is back with the daily Amazon Quiz where users can answer questions and stand a chance to win exciting prizes. The Amazon Quiz for November 30, 2020 is live now, and the winner will be eligible to win Rs 15,000 Amazon Pay Balance.

Amazon quizzes focus on product trivia and provide the opportunity for customers to win exciting prizes. The prizes for these quizzes range from free products (including mobile phones and other gadgets) and goodies to Amazon Pay balance.

Check out the questions and answers for today’s Amazon quiz to bag the Rs 15,000 Amazon Pay Balance.

Q1: India’s first roll-on roll-off passenger ferry (Ro Pax) service was launched between Hazira and Ghogha in which state?

Answer 1: Gujarat

Q2: Whose record of becoming the year-end World No. 1 for six years, did Novak Djokovic equal in 2020?

Answer 2: Pete Sampras

Q3: King Rama X is the reigning monarch of which country?

Answer 3: Thailand

Q4: Which of these royal titles features in a popular item sold by this company in India?

Answer 4: Maharaja

Q5: Which company gets its name from this great scientist?

Answer 5: Tesla

How to Play the Amazon Quiz?

  • Step 1: This is an Amazon App only offer, so we suggest you download & install the Amazon Android or iOS app from Google Play Store or Apple’s App Store.
  • Step 2: Now open the Amazon App & Sign in into your Amazon Account (Create an account if you do not have an existing Amazon account)
  • Step 3: How to go to the Amazon Quiz? Go to the homepage and scroll down in the Amazon app > Offers > click on Amazon Quiz 8 AM to 12 PM. Another way to go to the Amazon Quiz page is by clicking on the Menu > Programs and Features > FunZone
  • Step 4: Now just click the Amazon Quiz Banner & start the quiz by tapping the “Start” Button
  • Step 5: You have to answer the five questions correctly in the Daily Amazon Quiz in order to be eligible to win exciting prizes
  • Step 6: After answering all of today’s Amazon Quiz questions correctly, you will then be eligible for the Amazon Quiz winners’ lucky draw
  • Step 7: The Amazon Quiz lucky draw winners are announced on the winners list declaration date
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