Shares of Infosys fell over 1 per cent today after a fresh row erupted between founder N R Narayana Murthy and the company's board over the pay hike to chief operating officer U B Pravin Rao.
The stock settled at Rs 1009.45 on BSE, down 1.11 per cent from the previous close. Intra-day, the stock had touched a low of Rs 1,006.55 and a high of Rs 1,030.50.
On the National Stock Exchange, the scrip fell 1.17 per cent to close at Rs 1,010.30.
In terms of volume, more than 23 lakh shares traded on the bourses.
Following a plunge in the counter, Infosys' market capitalisation eroded by about Rs 2,607 crore to Rs 2,31,865 crore on the BSE.
Murthy yesterday said the compensation hike to Pravin Rao approved by the board in February was not "proper" and "will likely erode the trust and faith of the employees in the management and the board".
Infosys board passed Rao's pay hike with 67 per cent of votes, while 33 per cent voted against it.
Only 24 per cent of promoters voted in favour of the compensation hike, and rest of them abstained from voting.
Murthy 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 favour a top management person.
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