Infosys Ltd CEO and MD Vishal Sikka resigned from the post on Friday following disputes with some founders of Infosys Ltd, including Narayana Murthy. In a statement released by Infosys on Friday, the board of directors accepted Sikka’s resignation and appointed U B Pravin Rao as the 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.
On the other hand, the board of directors at Infosys Ltd blamed founder N R Narayana Murthy for Vishal Sikka’s resignation. N R Narayana Murthy, in the past, has several times criticised the board. A statement released by the board after Vishal Sikka’s resignation said that “Mr. Murthy’s continuous assault is the primary reason that the CEO, Dr Vishal Sikka, has resigned despite strong Board support.”
Vishal Sikka after resigning as the CEO has now been made the executive vice-chairman of the company and will supervise the transition. A press release issued by Infosys said: “Sikka has been appointed executive vice chairman effective today (August 18), and will hold office until the new permanent Chief Executive Officer and Managing Director takes charge, which should be no later than March 31, 2018. Sikka will continue to focus on strategic initiatives, key customer relationships and technology development. He will report to the Company’s Board. UB Pravin Rao has been appointed Interim Chief Executive Officer and Managing Director reporting to Sikka under the overall supervision and control of the Company’s Board.”
Vishal Sikka was appointed as the CEO of Infosys Ltd in 2014, making him the first CEO who was not also one of its founders.
Here are the top developments in Vishal Sikka’s resignation as the CEO today:
1. U B Pravin Rao has been appointed as the interim CEO.
2. Vishal Sikka is now the executive vice-chairman of the company and will oversee the transition.
3. Vishal Sikka cited, ‘a continuous stream of distractions and disruptions’ that were stumbling blocks in managing the company, as the reason behind his resignation.
4. The board of directors at Infosys Ltd blamed founder N R Narayana Murthy for Vishal Sikka’s resignation.
5. A group of founders of the company led by N R Narayana Murthy, criticised the Board of directors for not reining in Sikka and for not being vigilant enough to suspect wrong-doing in the course of acquisitions.
6. The Board claimed that Murthy has been insinuating corruption in the acquisition of the Israeli firm Panaya without providing any evidence.
7. N R Narayana Murthy in a response to the allegations levelled by the board of directors said, “will reply to ‘these allegations in the right manner and in the right forum and at the appropriate time.”
8. Infosys Co-Chairman, R Venkatesan commenting on Vishal Sikka’s exit said, “With incredible sadness, we have accepted the resignation of Vishal Sikka, fully understand his reasons.”
9. Ex-Nasscom chairman BVR Mohan Reddy said it was ‘sad’ to see a ‘good CEO’ like Vishal Sikka stepping down as the CEO of Infosys, and added that promoters have no say after leaving a company.