Saturday, July 07, 2007

Independent directors at Infosys and TCS

Being an independent director on Infosys or TCS can be a rewarding experience- in more senses than one. In 2006-07, independent directors at Infosys were paid commission the range of Rs 2- 2.2 mn.

TCS was more generous in terms of cash payments although more discriminating. It paid independent directors total fee of Rs 0.9 -5.7 mn, "depending on their attendance and contribution at board and certain committee meetings as well as the time spent on operational matters other than at meetings".

Infosys is stepping up fees in the coming year- base pay to directors will be Rs 3.2 mn. Also, many independent directors hold shares in Infosys, the result of exercise of stock options. If these are taken into account, the Infosys package may be more attractive.

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