Vishal Sikka the CEO of Infosys puts his papers down as he blames “continuous drumbeat of distractions” a never ending feud with founders over the tech firm’s strategy.
The retreat of Sikka who was first CTO at German software company SAP petrified Infosys’ investors.Shares fell more than 13 percent to a three-year low of 884.20 rupees ($14.71), wiping about $4.85 billion off the No.2 Indian IT services firm’s market value.
U.B. Pravin Rao the Chief Operating Officer has been named as the managing director and CEO in the meantime. Rao will be accountable to Sikka who will adorn the mantel of the executive vice chairman role until a permanent CEO takes on.
The company’s board bolstered Sikka and conveyed in a statement that founder and former-chairman Narayana Murthy’s constant attack was the main basis for Sikka’s resignation. Murthy said that he was really agonized by the contentions, resonance and tenor of the statements. His main worry was the degrading standard of corporate working.
The architects who still own 12.75 percent of Infosys have raised the question of pay rise conceded to Sikka and Rao. Also the size of severance payouts given to others, including the company’s former finance head Rajiv Bansal was an issue.
Sikka mentioned in the blog post that he cannot carry out his job responsibilities as CEO and continue to give his best while relentlessly safeguarding against groundless, malevolent and personal attacks. Sikka is not like the former CEOs that he is not one of its founders as he spends more time in US from where the company acquires the majority of its proceeds.