After taking over as the non-executive chairman of Infosys, Nandan Nilekani on Friday exuded confidence that since he’s got consensus-building skills he would be able to bring stability in the company, build strategy and help in finding a new CEO. However, during his two interactions during the day — an investor call in the morning and a press conference in the evening — Nilekani just stuck to the script and in his trademark affable style ducked hard, pointed questions related to the issues that created controversy in the company and which culminated in Vishal Sikka’s resignation as CEO and MD last Friday. On the most contentious question that related to making public the investigation report relating to the Panaya acquisition, which co-founder and chairman emeritus NR Narayan Murthy has been insisting on, Nilekani gave a vague reply that he would first study the investigation with an open mind and then decide the next course. He also did not give any direct reply as to what was the guarantee that any friction between the founders and a future CEO would not happen in future. While several questions were asked at the two conferences about the reasons for Sikka’s and other board members’ exit, Nilekani avoided giving a direct answer.
“The board is focused on bringing complete stability to the company. It has also tasked its committee of directors to work with the CEO and management to review and refresh the company’s strategy by October,” was the general refrain of Nilekani to most pointed questions. He also said that he would be in a position to discuss issues regarding strategy etc only in October when the company would come up with the second quarter earnings. Nilekani also said that he has not come with a fixed tenure and would stay as long it was needed.
Interestingly, the board on Friday regretted its attack on Murthy a week ago. “The Board believes it to be unfortunate that various differences of opinion have arisen between Murthy and the Board in the recent past. The Board wishes to express that it was not its intention to cause Murthy or any other affected person any personal distress or anguish while stating its point of view,” it said in a statement. The only reference Nilekani made to Murthy was calling him a person who took corporate governance to the next level and someone whom he respected and one who brought him to Infosys. Calling him a transformational leader he said that the board would take call on all big decisions. He also reiterated his faith in institutional investors and shareholders who had placed trust in him, and said he will ensure that Infosys gets back its iconic status. “Iconic founders have always had a relationship with the company, whether formal or informal. Murthy is very much in that league. I will seek his advice and inputs,” Nilekani said.
However, he was quick to add: “But I do have an obligation to look at the company from all complex stakeholder angles. The board will have the final say.” While he did not talk about any specific strategic initiative he had in mind, he did say that all of Sikka’s initiatives such as artificial intelligence and zero distance would be assessed to see if they fit in with the company’s strategy going forward. As is known, late on Thursday evening Nilekani was appointed as non-executive chairman and director of Infosys, thus bringing peace at the company after a week-long turmoil. Chairman R Seshasayee and Sikka, executive vice-chairman, also resigned from the company at the same time, while Ravi Venkatesan, who was co-chairman, stepped down from that position to stay on as director. UB Pravin Rao, who was made interim CEO and MD upon the resignation of Sikka, would continue in that position till a full-time CEO is appointed.