CEO & MD of Infosys Resigns: Angel Broking
- Author: Neal Todd Aug 20, 2017,
Aug 20, 2017, 1:59
Vishal Sikka, who resigned as the Managing Director and Chief Executive Officer of Infosys Ltd., on Friday cited that the continuous stream of distractions and disruptions are among the main reasons him behind his decision to quit.
Infosys said CEO Vishal Sikka is stepping down "effective immediately".
"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 said in a statement. He will stay in that capacity until a new permanent CEO and managing director takes charge by March 31.
According to Tuljapurkar, the fact that the promoter and the board are communicating through external channels like the media and lawyers speaks a lot about the state of "stakeholder engagement" that is being practised in the company.
On Saturday, Infosys announced its Board has approved a proposal for the company to buyback its fully paid-up equity shares from the equity shareholders of the company for an amount not exceeding $2 billion.
Infosys, a multinational IT services and consulting business based in India, is now without a permanent CEO and managing director after the abrupt resignation of Vishal Sikka.
The resignation follows a year-long acrimony between the board the high-profile founders led by Murthy, who raised issues of "poor corporate governance" and executive pay as well as doubts over acquisitions. For now, though, the 50-year-old technologist will step down to the vice-chairman role until the company can find a successor.
Infosys Chairman R Seshasayee responded to Murthy's allegations saying the suggestion that renowned law and audit firms will connive with the Board and overlook "misdeeds" of the CEO and post a clean report, is "completely untenable".
During Sikka's tenure, Infosys grew substantially apart and made forays into Artificial Intelligence as well as other cutting-edge innovations, in a departure from its traditional strengths.
The company said that Murthy's letter contains factual inaccuracies, already-disproved rumours, and statements extracted out of context from his conversations with the board.