Infosys Chairman NR Narayana Murthy has warned that executives who are earning fat salaries but adding little value to the company would have to exit.

Promising action against executives who are turning in below-par performances, Mr. Murthy said a lot of fat needed to be removed.

Speaking at an investor call with Bank of America-Merrill Lynch on Wednesday, he said, "A lot of fat needs to be removed . We will give these people the opportunity and tools to improve, but if they don't, we will have to bid them goodbye."

In a bid to put more weight to his statement, he added that strict action was needed to put the software giant back on the path of growth.

Mr. Murthy also said that some of the recent executive exits were necessary, excluding a few exceptions. It may be noted here that since June last year, when Mr. Murthy returned to the company, at least eight top executives have exit.

Compensation at the company's overseas locations jumped from 36 per cent of revenues in FY2011-12 to 46.3 per cent in FY2012-13, which, along with other factors, forced the company to embark on a cost optimisation drive, particularly in the United States.

The cost optimisation drive, which is expected to consume 6-18 months, is one of the company's three-pronged strategy; with the other two being making sales more effective and improving delivery.