Sikka's good reason clause global practice; Infy disclosure norms not good

Officially, out of Sikka's $11 million salary, $8 million is variable pay

Infosys Chief Executive Officer Vishal Sikka will be able to take 90 per cent of his annual compensation, or nearly $10 million, if he wishes to exercise a clause in his employment contract. This clause is a global practice, analysts say. However, Infosys' selective disclosure about this clause to the US Securities and Exchanges Commission and Indian stock exchanges last year, according to analysts, violates good corporate governance practice.

Though Infosys has notified to the stock exchanges that Sikka’s salary might fall to $3 million from $11 million if performance targets set by the board are not met, the “good