"Distractions and untenable atmosphere" force Vishal Sikka to resign as Infosys CE

Posted August 20, 2017

Infosys has blamed a recent letter by Narayan Murthy allegedly for Vishal Sikka's exit.

The succession plan for appointing a new MD and CEO has been into operation and a search has started for the same, the company said. More recently, Murthy, who in an email to advisors, quoted three independent directors of the company as saying that Sikka was not "CEO material", but more suited to be the chief technology officer.

Mr. Sikka will stay on as executive vice chairman of the Bangalore-based company.

The company was hoping that Mr. Sikka, known for leading and accelerating the launch of sophisticated software platforms at SAP, could make Infosys an industry trendsetter again.

"The Board is profoundly distressed by the unfounded personal attacks on the members of our management team that were made in the anonymous letters", Infosys said in a statement.

Three children found dead in Clinton home
When police arrived they were met by family members who directed the police to the victims inside the house. All three girls were found with trauma to their bodies, but the exact cause of death is not yet known.

To the high salaries of senior executives, the big issues reportedly relate including Sikka, particularly at a time when there is a slowdown in IT sector and people are losing jobs. "It is a bit sad, but I hope this will help the company improve and move on", Sikka told reporters via a video call from the United States, along with Board chairman R Seshasayee.

Sikka's comments about the "malicious and personal attacks" appear to be aimed at Infosys co-founder NR Narayana Murthy. Such remarks, apparently leaked out of context, had left Sikka unhappy, apart from a host of other reasons.

The board of Infosys approved the repurchase of 113 million shares at Rs1,150 apiece, the company said in a stock exchange filing, returning cash to investors at a substantial premium to Friday's closing price of Rs923.25.

The buyback comes in the wake of the resignation of Vishal Sikka, who was embroiled in a feud with the company founders. Some of the key portfolio investors in the company include Vanguard, Oppenheimer, Abu Dhabi Investment Authority and the government of Singapore. The market capitalization of Infosys stood at $33.1 billion (Rs 2,12,033 crore) at the end of Friday.

Over concerns of securities fraud or other unlawful business practices by officers or directors, Pomerantz Law Firm is also starting an investigation against the company.