Top-level exits clouding Infosys' turnaround, say brokerages

Aug 30 2013, 08:37 IST
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Three top-level management exits at Infosys in a span of just 50 days have led to some doubts regarding the turnaround plan charted by NR Narayana Murthy. Three top-level management exits at Infosys in a span of just 50 days have led to some doubts regarding the turnaround plan charted by NR Narayana Murthy.
SummaryThree top-level management exits has led to doubts regarding turnaround plan charted by Murthy.

among existing management.”

The creation of chairman's office at Infosys has also led to some troubling questions on how this would be in conflict with the existing executive council set up within the company. “Some questions bear answering such as — How does the executive council (the highest-ranked executive body at Infosys) co-exist without conflict with the newly created chairman’s office? Does the latter interfere with the former in any way? Are the powers, duties and responsibilities well demarcated between the two bodies or is there a risk of the existence of a parallel powerful body through the chairman’s office?” JP Morgan's report has questioned.

However, the biggest question is the role being played by Murthy's son Rohan Murty. Appointed as executive assistant, there are reports that he could be elevated to a higher role, such as vice-president, leading to angst within the company. JP Morgan said, “Typically, VPs have 15 years’+ of experience. To have the founder's son join without notable operating experience at the level of VP may not be viewed favourably by some.”

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