Infosys CEO Vishal Sikka resigns LIVE updates: In its Con call, Infosys confirmed that Narayan Murthy's continuous attacks were the primary reason behind Vishal Sikka's resignation.
Infosys CEO Vishal Sikka resigns LIVE updates: In its Con call, Infosys confirmed that Narayan Murthy’s continuous attacks were the primary reason behind Vishal Sikka’s resignation. After Vishal Sikka quit as the CEO and MD of Infosys this morning, reactions have started to come in from all across India. While Harsh Goenka took a dig by saying that the old guard has won, Nilesh Shah said Infy needs to get the house in order. Meanwhile, Anand Mahindra reacted by saying that he will continue to cheer for Infosys. UB Pravin Rao was appointed as the interim MD and CEO of Infosys but Sikka will continue as the Executive Vice Chairman of the IT consulting major till Pravin takes charge. U B Pravin Rao as Chief Operating Officer has overall strategic and operational responsibility for the entire portfolio of the company’s offerings, Infosys said in a statement. Sikka’s resignation came just three years after being appointed as the CEO of Infosys, replacing NR Narayan Murthy.
Here are LIVE updates after Vishal Sikka resignation:
12:40 PM: Earlier, NR Narayana Murthy, founder of Infosys had raised issues pertaining to the quantum of salary hike given to the CEO Vishal Sikka and the size of the severance packages given to former CFO Rajiv Bansal and former General Counsel David Kennedy.
12:28 PM: “Sikka’s allegation that he was continuously being distracted does not wash as he had long enough a honey moon period to make his mark. In the IT space , we like a smaller company, Persistent Systems more as it is has business portfolio that is relevant to the times , which is SMAC – Social, Media, Analytics and Cloud,” Sharma added.
12:16 PM: Narayan Murthy is currently holding a meeting with Nandan Nilekani and others, reported ET Now.
12:14 AM: “In March, Infosys announced that it will establish a central Indiana tech center as part of a broader expansion in the United States that is projected to create 10,000 jobs in coming years. The plan includes an $8.7 million investment to lease and equip office space in the Indianapolis, Indiana, area to accommodate 2,000 new workers by the end of 2021,” reported AP.
12:09 AM: V K Sharma, Head – PCG, HDFC securities reacted to Sikka’s resignation by saying, “Sikka’s exit draws a long drawn out board room battle to a close. While the Company did better than the industry during Sikka’s tenure, it was no where near achieving Sikka’s own $ 20 bn target by 2020. The forthcoming buy back may belay the stock from falling more.”
12:07 AM: In his con call, Sikka said attacks started getting increasingly malicious and personal which made it difficult for him to continue.
11:58 AM: Ravi Venkatesan in the con call said that he had to accept Sikka’s resignation with great regret & sadness.
11:52 AM: “Was constantly disturbed by the speculations & baseless allegations; they disrupted our productivity,” Sikka further said during the con call.
11:47 AM: Sikka said continuous drumbeat of allegations is ‘sickening’. He added that there came a point when he decided that he cannot continue anymore.
11:46 AM: Sikka added that in last three years, $100 mn clients have increased from 12 to 19.
11:43 AM: Talking about his achievements, Sikka said first time in 5 years Infosys was able to beat TCS in margin and the utilisation also hit a 10-year high.
11:41 AM: Vishal Sikka is speaking at the moment. Sikka said he is proud of what Infosys has achieved in 3 yrs amid the significant shift seen in the industry.
11:40 AM: Ravi Venkatesan, the Infy co-chairman said that UB Rao will report to Vishal Sikka & Board till new CEO takes over. He thanked Sikka for wonderful support in last 3 years.
#Infy Mgmt Ravi Venkatesan: Board Accepted Sikka’s Resignation With Great Sadness.
Board Distressed By Continuing Allegations Against Sikka pic.twitter.com/7ALuPX57CT
— BTVI Live (@BTVI) August 18, 2017
11:38 AM: It added that dialogue with Murthy to resolve issues was unsuccessful and his actions & demands are damaging the company.
11:36 AM: The Board clarifies that it believes that we must set the record straight on false & misleading charges by Murthy.
11:35 AM: Infosys Board confirms that Murthy’s continuous assault, including the latest letter was primary reason why Vishal Sikka resigned
11:33 AM: Infosys Con Call has begun.
11:30 AM: Sikka’s resignation has seen a direct impact on the stock market. Sensex is down by the TCS stocks are up by 2%.
11:28 AM: “Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks… Allegations that have been repeatedly proven false and baseless by multiple, independent investigations,” Sikka had said in his letter while attacking Murthy.
11:25 AM: “I now need to move forward, and return to an environment of respect, trust and empowerment, where I can take on new lofty challenges, as can each of you,” added Sikka in his letter.
11:19 AM: Another reaction coming in from Harsha Bhogle. “If true that issue in #Infosys is ‘what worked in the past may not work in the future” then sport tells us that everyday! #TheWinningWay,” he wrote on Twitter.
11:18 AM: The Infosys Con Call which was scheduled for 11 AM earlier has now been postponed till 11:30 AM, reports ET Now.
11:16 AM: “Crises are like a furnace that forges more durable steel. Infy is iconic & will always have people cheering for it. I certainly will,” writes Anand Mahindra.
11:11 AM: Meanwhile, the Infosys stocks fell by over 7% which the biggest slide in last 9 months.
11:09 AM: “I was, and remain, passionate about the massive transformation opportunity for this company and industry, but we all need to allow the company to move beyond the noise and distractions,” wrote Sikka in his letter.
11:06 AM: On August 7, Mohandas Pai in a tweet had asked whether Vishal Sikka is the right man to lead Infosys. Today he sought the return of Narayan Murthy:
— BTVI Live (@BTVI) August 18, 2017
11:04 AM: Infosys will shortly hold a press conference on Vishal Sikka’s resignation. Stay tuned!
11:00 AM: Nilesh Shah while speaking to ET Now said Sikka’s resignation is an issue of relation between promoters and professionals. He added that Infy is the poster boy of Indian IT and needs to get the house in order.
10:57 AM: “Wow, so #Infosys, a company I have always believed stood for what India could achieve, stumbles onto another crisis,” writes Harsha Bhogle.
Wow, so #Infosys, a company I have always believed stood for what India could achieve, stumbles onto another crisis.
— Harsha Bhogle (@bhogleharsha) August 18, 2017
10:55 AM: “We have grown our revenues, from $2.13B in Q1FY15 to $2.65B this past Q1. We did so while keeping a strong focus on margins, closing this past quarter at 24.1% operating margin, beating some competitors for the first time in many years, and improving against most in our industry,” Sikka wrote in his letter.
10:54 AM: Here is how Mohandas Pai reacted to Vishal Sikka’s resignation:
— BTVI Live (@BTVI) August 18, 2017
10:51 AM: According to CNBC TV-18, Sikka had joined Infosys on Jun 12, 2014. Back then, the stock gave 22% Returns since then.
10:48 AM: Earlier this year, in February to be precise, Sikka at an investor conference in Mumbai had called Narayan Murthy an incredible man while mentioning that he had a “wonderful” relationship with the founders.
10:42 AM: “Your time is limited, don’t waste it living someone else’s life. Don’t be trapped by dogma, which is living the result of other people’s thinking. Don’t let the noise of other opinions drown your own inner voice. And most important, have the courage to follow your heart and intuition, they somehow already know what you truly want to become,” Sikka quoted Steve Jobs in his letter.
10:36 AM: In another tweet, Harsh Goenka took a dig at Vishal Sikka. “Post demonetisation, old ‘sikkas’ not working. ‘Vishal’ change in #Infosys. Old guard wins,” he wrote.
Post demonetisation, old ‘sikkas’ not working. ‘Vishal’ change in #Infosys. Old guard wins.
— Harsh Goenka (@hvgoenka) August 18, 2017
10:32 AM: Harsh Goenka while talking to ET Now said Vishal Sikka is a top class global leader and it is unfortunate that he could not align well with earlier promoters, founders.
10:30 AM: UB Pravin Rao comes with an experience of 30 years and according to a press release oversees the key functions of global sales, global delivery, and business enabling functions.
10:28 AM: As the news of Infosys CEO and Managing Director Vishal Sikka’s resignation came in, the benchmark BSE Sensex plunged by 207.75 points or 0.65 per cent to 31,587.71 in early trade on Friday.
10:26 AM: The new CEO and MD will take charge by March, 2018, reports ET Now.
10:25 AM: “In his notice of resignation to the Board, Dr. Sikka reiterated his belief in the great potential of Infosys, but cited among his reasons for leaving a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management’s ability to accelerate the Company’s transformation,” Infosys said in a statement earlier today.
Vishal Sikka quits as Infosys MD & CEO; Pravin Rao appointed as the interim MD. Watch details. pic.twitter.com/C2xZPgadY7
— TIMES NOW (@TimesNow) August 18, 2017
10:21 AM: In a statement after Sikka’s resignation, Infosys said it has accepted the letter but regrets the decision.
10:20 AM: Vishal Sikka had joined Infosys back in 2014. Before that he was a member of the Executive Board of SAP SE, leading all products and technologies, including all of product development, and driving innovation globally.
10:18 AM: “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 wrote in his resignation letter.
10:16 AM: Before quitting Sikka wrote a letter to his employees in which he said, “In 2014, we started with a very challenging set of conditions, and in the last three years, we have decisively turned things around.”
10:15 AM: Sikka’s resignation came after a protracted war of words between the company and its founders and some former executives, who were unhappy with various decisions taken by the board, reported Reuters.
FOLLOW | INFOSYS LTD – STOCK PRICE LIVE
10:00 AM: The founders, who still own 12.75 percent of the firm, had questioned a pay rise granted to Sikka and the size of severance payouts given to others, including its former finance head Rajiv Bansal.