Here’s what has happened: 

Founders speak out against Sikka

Infosys founders N.R. Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani reportedly wrote to the board last month expressing their concerns, CNBC TV18 reported on Tuesday.

Murthy and the other founders, who were involved in the running of the company while holding different roles, had stepped away to give Sikka a free hand after he took over. 

What is the problem the founders have?

Some of the founders, led by NR Narayana Murthy, have pointed out that transparency and corporate governance at the company has been hit by the amount being paid as salary to Sikka and the amount paid to its former chief compliance officer David Kennedy, reports Business Standard. 

A Times of India report pointed out that the promoters have had other issues as well including the appointment of Union Minister Jayant Sinha’s wife Punita as an independent director and paying Rs 17.4 crore to ex-CFO Rajiv Bansal when he left. 

Why do the complaints matter?

The founders of the company own a 12.75% stake in the company. Murthy and his family members own the largest amount. 

An Economic Times report says that the difference in the board has prompted the majority of the directors, led by its chairman R Seshasayee, to support Sikka, according to people close to the situation. 

So what now?

Shriram Subramanian, the head of InGovern which is an independent corporate governance research and advisory firm, told ET Now that it was a possibility that could mean Sikka could have to leave the company like Cyrus Mistry was ousted as Chairman from the Tata Group. 

Subramanian said that the founders could try to remove Sikka as CEO or alternatively other board members who are backing him. 

Either way, there could be a new corporate potboiler in the offing.