Vishal Sikka has now been appointed as executive vice-chairman. UB Pravin Rao has been appointed as interim MD and CEO with immediate effect.
The IT-giant Infosys on Friday blamed co-founder NR Narayana Murthy for Vishal Sikka’s resignation from the post of Managing Director (MD) and CEO.
Vishal Sikka, the first non- founder CEO of Infosys, resigned amid heightened acrimony between the board and the high-profile founders led by NR Narayana Murthy, saying he faced ‘false, baseless, malicious and increasingly personal attacks’.
“NR Narayana Murthy’s continuous assault, including the latest letter, is the primary reason why Vishal Sikka resigned,” reported PTI quoting Infosys.
In a letter to the Infosys board, Sikka said the ‘continuous stream of distractions and disruptions’ that became increasingly personal and negative, forcing him to quit.
While Sikka didn’t detail out these ‘distractions’, it may be noted that some of Infosys founders, including N R Narayana Murthy, have alleged corporate governance lapses.
Murthy and others had questioned the high compensation paid to Sikka as also severance package to certain former executives. In an interview, Murthy had also suggested that IT companies can protect the jobs of youngsters if senior executives take pay cuts.
Reacting to the allegations, Murthy said, “I will reply in right manner, at right forum and at an appropriate time.”
Meanwhile, Infosys said that currently, has no intention of asking NR Narayana Murthy to play a formal role in company’s governance.
Reacting to Sikka’s resignation, the board said it is ‘profoundly distressed’ by the unfounded personal attacks on the members of the management team.
“The board denounces the critics who have amplified and sought to further promote demonstrably false allegations, which have harmed employee morale and contributed to the loss of the company’s valued CEO,” Infosys said in a statement.
While the permanent replacement is to be hired no later than March 31, 2018, Sikka will focus on strategic matters and draw an annual salary of $1.
UB Pravin Rao, Infosys’ Chief Operating Officer, has been appointed Interim CEO and MD, reporting to Sikka under the overall supervision and control of the board.
In the last few months, the country’s second largest software firm, has seen a number of senior-level executives resigning. They include Anirban Dey (Global head and chief business officer of Edge products), Yusuf Bashir (MD, Infosys Innovation Fund) and Ritika Suri (executive vice-president).
Sikka took over as CEO and Managing Director of the country’s second largest IT firm in August 2014.In February, 2016, his tenure was extended by nearly two years till March 2021, saying his initiatives have helped the company move towards reclaiming its industry leadership position.