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  1. Infosys CEO Vishal Sikka resigns: What Narayana Murthy said from day one about Infosys CEO to how it changed; Know here

Infosys CEO Vishal Sikka resigns: What Narayana Murthy said from day one about Infosys CEO to how it changed; Know here

The personality clashes between the 70-year-old founder NR Narayana Murthy and 49-year-old Vishal Sikka has been damaging to both the company's shareholders as well as the employees.

By: | Published: August 18, 2017 12:13 PM
Infosys CEO Vishal Sikka resigns: Earlier in July this year, NR Narayana Murthy had said that he regretted quitting as chairman of Infosys in 2014 and should have had listened to other co-founders of India’s second largest software exporter firm and stayed on. (Reuters)

Infosys CEO Vishal Sikka resigns: On August 1, 2014, Vishal Sikka took over as Chief Executive Officer and Managing Director (CEO & MD). The then Executive Chairman, NR Narayana Murthy, said that he was pleased with the selection of Sikka as the new CEO. In a press release, Murthy had said, “Vishal brings valuable experience as a leader of a large, global corporation. His illustrious track record and value system make him an ideal choice to lead Infosys. On behalf of all of us at Infosys, I would like to thank Mr. Gopalakrishnan, Mr. Shibulal and Mr. Batni for their contributions.”

Now barely three years later, Sikka on Friday resigned from the IT consulting major. UB Pravin Rao has been appointed as the interim MD & CEO of Infosys. Sikka, however, has been appointed as Executive Vice Chairman of Infosys. The company in a statement has said that it has accepted the resignation of Sikka with immediate effect and he has been appointed as Executive VC.

While signing off his second innings at Infosys in 2014, Murthy had earlier said he along with his son Rohan decided to step down and had said his “work was done” and hoped that the new CEO Vishal Sikka would chart a new course without any interference from founders. Murthy had said, “…fairness, transparency, meritocracy and accountability are the key to success for any enterprise. Somehow, the company had diluted its focus on meritocracy and accountability during the last decade.” Murthy described Sikka as a ‘technology visionary’, and said that he had carried out the mandate that the Infosys board had accorded him about an year ago, as reported by PTI.

Also Read| Vishal Sikka resigns: Timeline of Narayana Murthy’s corporate governance tussle with Infosys

However, the past has seen much trouble at Infosys. The personality clashes between the 70-year-old founder NR Narayana Murthy and 49-year-old Vishal Sikka has been damaging to both the company’s shareholders as well as the employees – however, no direct attack was launched personally against each other in public. In the month of February, this year Murthy and other co-founders flagged worries over issues like a hike in CEO Vishal Sikka’s compensation and big severance pay given to former executives. Bloomberg had earlier quoted Murthy as saying, “Let me stop. I have made a point, paying such large sums of money is confusing. Now they have to sort it out…I felt that I don’t want it to snowball. I don’t have the time. Neither should the board and the management be spending time on it.”

Earlier in July this year, Murthy had said that he regretted quitting as chairman of Infosys in 2014 and should have had listened to other co-founders of India’s second largest software exporter firm and stayed on.

Also Read| Vishal Sikka’s parting punch to Narayana Murthy: OK fine, I am out. But it’s you who’s making a mess

Tellingly the Board in a statement that was tweeted by ET Now puts the whole issue in public. It said this today: ” Murthy’s continuous assault, incl latest letter, primary reason that CEO resigned.” It added, “Murthy’s letter contains factual inaccuracies, already-disproved rumours. Believes we must set the record straight on false & misleading charges by Murthy.”

It even went to the extent of adding, “Murthy’s actions & demands are damaging company.” It concluded by saying, “Dialogue with Murthy to resolve issues unsuccessful. Will not comment on Murthy’s campaign motive.”

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