CEO steps down at IT services provider Infosys

Vishal Sikka with Infosys promoter founder Narayan Murthy. DH file

Vishal Sikka blamed "continuous stream of distractions and disruptions" for his resignation, saying that attacks had become increasingly personal and negative and that the "distractions" were preventing the management's ability to accelerate the company's transformation.

The board running Infosys on Friday alleged that "continuous assaults" by the company's co-founder, NR Narayana Murthy, had forced Vishal Sikka to resign as the chief executive officer and managing director.

He will stay on as executive vice chairman while Infosys veteran UB Pravin Rao, now chief operating officer, will take over as interim chief executive. ' On the resignation, the company said that till assuming charge of the new managing director and CEO, there will be huge Executive Vice-Chairman. "A lot of my decisions are based on idealism and probably, I should have listened to them", he told CNBC TV 18.

Vishal Sikka has resigned as chief executive of Infosys, the Indian software giant announced today, amid tensions between the company's board and its founders.

Dec 2014: Some of Infosys's founders - N.R. Narayana Murthy, Nandan Nilekani, S.D. Shibulal and K. Dinesh - sell shares worth $1.1 billion in the company, cashing in on a more than 20 percent gain in the stock since Sikka's appointment. Sikka will stay as Executive Vice Chairman to ensure a transition until a permanent CEO is identified.

In February last year, Sikka's term was mid-way extended by two more years till 2021 largely because of his performance.

"After much reflection, I have concluded that it is indeed time for me to leave my current positions as MD and CEO, and I have communicated my resignation to Sesh", Sikka said in his resignation lette, referring to Infosys Chairman R Seshasayee.

Feb 2017: Company reassures investors and analysts it was not being distracted by a dispute with founders.

"According to independent director and co-chairman Ravi Venkatesan, the company will now start the hunt for a new CEO, both externally and internally".

At Day's low, Infosys shares plunged over 13 per cent to 52-week low of Rs 884.40 on the BSE.

"According to experts, the allegations, counter allegations in the case of Infosys after October past year when Cyrus Mistry, ex chairman of the Tata Sons group took on the promoters after being removed from his position reflect a breakdown of trust and communication within the company and mark an "inflexion point in the area of corporate governance in the country". In the process, it pulled down two key market indices by nearly one per cent.

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