Vishal Sikka Resigns As Infosys MD & CEO, Pravin Rao Interim Chief
Amid simmering differences with the Board of Directors and co-founders of Infosys, Vishal Sikka resigns as the Chief Executive Officer of the second largest IT company in India. UB Pravin Rao has been appointed as the interim chief and managing director. The giant of Silicon Valley said it in a notice to the stock exchange.
Dr. Sikka wrote in his BlogSpot shortly after his resignation, “very public noise around us had created an untenable atmosphere that prevented the management from functioning effectively.”
Vishal Sikka was the first non-founder CEO of the company. Now the Silicon Valley import is appointed as the executive vice chairman. Infosys has accepted Sikka’s resignation during a board meeting on Friday.
“In his notice of resignation to the Board, Dr. Sikka reiterated his belief in the great potential of Infosys, but cited among his reasons for leaving a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management’s ability to accelerate the company’s transformation,” said Infosys.
In a report published in Mint, Infosys co-founder N.R. Narayana Murthy tells advisers in an email that at least three independent directors have been complaining about CEO Vishal Sikka.
“All I hear from the at least three independent directors, including MR Ravi Venkatesan (co-chairman), are complaints about Dr. Sikka. They have told me umpteen times that Dr. Sikka is not a CEO material but CTO material. This is the view of at least three members of the board, and I have not seen him operate from the vantage point of an Infosys board member,” Murthy said in the mail.
This crisis marked the low in the stock exchange as the scrip was trading over 5 per cent down at Rs 965.80 around 9.30 am (IST), whereas BSE sensex was down 185 points, or 0.58 per cent, at 31, 611.