Was hard to continue with continuous stream of distractions: Vishal Sikka

The logo of Infosys is displayed inside the company's headquarters in Bengaluru

The logo of Infosys is displayed inside the company's headquarters in Bengaluru

Blaming Murthy for Sikka's resignation, the Board in a statement said the founder's continuous assault, including the latest letter, was the primary reason for the former's resignation despite strong Board support.

UB Pravin Rao, Infosys' chief operating officer, was named interim managing director and CEO.

Infosys, in a surprise announcement, said Mr Vishal Sikka has resigned as chief executive, citing a stream of distractions and disruptions in recent months, pushing down shares of the second-largest Indian IT services firm nearly 8 per cent yesterday.

Meanwhile, board of directors at Infosys Ltd squarely blamed founder N R Narayana Murthy for Vishal Sikka's exit, a little over three years after he assumed the role.

Due to the ongoing tussle with the company co founder Narayana Murthy, Sikka has resigned. In a letter to the stock exchange, the Infosys board said that a letter Murthy wrote and released to the media had accused them and the firm's management of failing to curb the alleged "falling corporate governance standards" at the company, Mint reported. "Sikka's resignation followed criticism by the Company's founders of certain decisions by its board, including executive compensation and severance payouts", the statement said.

Murthy founded Infosys in 1981 and was CEO until retiring in 2002, but still holds 0.38 per cent of the $10bn company's shares, according to a company filing in June. Also sent to The Economic Times of India and other news outlets, a February 19 anonymous letter to India's Securities Exchange Board and the U.S. Securities and Exchange Commission alleged that the company's $200 million 2015 acquisition of the automation technology firm Panaya was overvalued and manipulated for personal gain by some Infosys leaders.

During Sikka's tenure, Infosys grew substantially apart and made forays into Artificial Intelligence as well as other cutting-edge innovations, in a departure from its traditional strengths.

"So, I felt that it is an undeniable situation and should come to an end", said Sikka during the Infosys press conference.

"Vishal has made a seminal contribution to the transformation of Infosys, and he will be remembered for infusing a refreshed sense of direction, goal and energy in the organization", said board Chairman R. Seshasayee.

Infosys, which is one of India's largest IT service companies, has been plagued with internal disagreements between its founders and the executive board.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.