Infosys chief steps down, fed up with sniping
Infosys Limited
₹1,049.20
11:35 04/10/16
Shares of Infosys dropped sharply following reports that its chief executive and managing director, Vishal Sikka, has resigned with immediate effect following disagreements between the company and a group of its founders led by its former chairman, NR Narayana Murthy.
In a lengthy public resignation letter published on Friday, Sikka cited prolonged tensions with the founders which had become a major distraction for the top ranks of management at the New York- and Mumbai-listed Indian IT services giant.
He complained of "malicious and increasingly personal attacks [...] amplified by the very people from whom we all expected the most steadfast support," and that the constant "distractions" were frustrating his efforts to grow the company.
The firm's founders, who still owned 12.75% of Infosys, had criticised a pay rise granted to Sikka and the size of severance payouts given to other employees.
Sikka, who took the helm in 2014, was the first Infosys leader selected from beyond the company's seven original founders who over the course of three decades had rotated in the role of chief executive.
The firm announced that Infosys chief operating officer U. B. Pravin Rao would take over as interim chief executive, with Sikka staying as executive vice chairman until a permanent replacement was found, with a target date of March 2018.
In a statement, Infosys said: "The board understands and acknowledges Dr. Sikka’s reasons for resignation, and regrets his decision.
"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."
Shares of Infosys were down by 9.39% to 925 rupees as of 1041 BST.