Infosys Ltd Chief Executive Officer and Managing Director Vishal Sikka resigned from the post on Friday following differences with some founders of the company, including Narayana Murthy. Infosys put out a statement today stating the board of directors had accepted Sikka’s resignation and appointed U.B. Pravin Rao as interim CEO and managing director. Vishal Sikka, in his notice to the board, said he was resigning because of “a continuous stream of distractions and disruptions” that were stumbling blocks in managing the company.
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. The Board has been criticised several times by Narayana Murthy in the past. The Board, in a statement on Friday, said that “Mr. Murthy’s continuous assault is the primary reason that the CEO, Dr. Vishal Sikka, has resigned despite strong Board support’’. Sikka, after his resignation, is now on the Board as the executive vice-chairman to oversee the transition. Also Read: Infosys Board: Narayana Murthy wants his diktats to prevail, responsible for Vishal Sikka’s exit
Here are the major events at Infosys Ltd since the appointment of Vishal Sikka as CEO three years ago:
August 2014: Former SAP AG executive board member Vishal Sikka takes over from S.D. Shibulal as Infosys CEO to revive the fortunes of the company which was losing market share.
December 2014: Some of Infosys’s founders such as N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal and K. Dinesh – sell shares worth $1.1 billion in the company, cashing in on a more than 20 percent gain in the stock since Sikka’s appointment.
February 2016: Board decides to extend Sikka’s tenure by two years to 2021. Also Read: Vishal Sikka had been losing ground in Infosys for a while
February 2017: Infosys says had already addressed concerns about executive pay after media reported that its founders had complained about decisions including a pay hike for Sikka. Also Read: Vishal Sikka resigns: Who is U B Pravin Rao, interim CEO of Infosys
February 2017: Company reassures investors and analysts it was not being distracted by a dispute with founders.
April 2017: Founder Murthy criticizes salary hike given to Chief Operating Officer Pravin Rao.
April 2017: Company announces $2 billion cash return to shareholders and appoints independent director Ravi Venkatesan as co-chairman of board, moves seen aimed at placating some founders and former executives who were critical about the management.
August 2017: Sikka resigns as CEO, citing a stream of distractions and disruptions.