Infosys comes up with a big news this time. The company saw its CEO and MD Vishal Sikka, resign due to the growing bitterness between the board and its group of founders led by the former chairman NR Narayana Murthy. So, right now the situation states Pravin Rao, currently acting as the Chief operating officer to become the executive vice chairman and interim-managing director, until a permanent replacement is found. Sikka will now place importance on the strategic matters, receiving an annual salary of $1., reason being the falling of shares of Infosys as much as 7.6 percent.
Infosys has been dilapidated by allegations of poor corporate governance by Murthy and his fellow founders in addition to criticisms of acquisitions and executive pay. Now, Sikka’s resignation comes as a big blow to Infosys as it is already tormented between the challenges posed by rapid industrial changes and the ever evolving customer base, including names like Goldman Sachs Group Inc. and Daimler AG.
Now, Sikka was quite unusual for an Infosys CEO owing to the facts like he was not one of the founders and is USA based, from where the company receives nearly two-thirds of its revenue. Also, he was greatly criticized by Murthy for flying private charters for meeting customers and setting up an office at Palo Alto.
As per the official statement by Infosys, the company stated that, “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”.
Infosys right now is going through a difficult juncture, trying to haul itself out of a growth impediment and trying to keep pace with the industry growth numbers recently. This resignation is an addition to that series leading to leadership instability.
Lastly, after the announcement, Vishal Sikka stated in a blog post that, “After much contemplation I have decided to leave because the distractions, the very public noise around us, have created an untenable atmosphere. “Life is too short to engage in battles of opinions in the public, these add no value, take critical time and focus away from the business, and indeed add more to the noise, to the eardrum buzz.”