Infosys MD and CEO Vishal Sikka’s resignation is a negative for the company, which will see the turnaround see a setback at India’s second-largest information technology services firm, research and brokerage firm Nomura said after Vishal Sikka yielded to the pressure built up by founder Narayana Murthy’s relentless personal attacks alleging misgovernance.
Earlier today, Vishal Sikka, who had joined Infosys less than three years ago in 2014 from SAP, said that he is resigning from Infosys on the account of rising personal disruptions. Vishal Sikka said that 100s of hours were spent on tackling drumbeat of distraction, and that the attacks undermined the good work done by the company.
Nomura said in its comments that following the exit of Vishal Sikka, the appointment of its Chief Financial Officer U B Pravin Rao as the interim-MD is at best a stop gap arrangement. The brokerage firm further said that it sees the executive exodus at Infosys continuing after Vishal Sikka’s resignation, with the employee attrition not expected to stop.
The ongoing tussle between Infosys founder N R Narayana Murthy and the board, which started sometime late last year, continued to turn murkier, with the veteran most recently asking that the findings of the law firm Cyril Amarchand Mangaldas relating to corporate governance lapses be made public. Previously, the founders led by N R Narayan Murthy had raised issues pertaining to the quantum of salary hike given to Vishal Sikka and the size of the severance packages given to former CFO Rajiv Bansal and former General Counsel David Kennedy.
Troubles at Infosys Ltd, once India’s bellwether information technology services company, seemed to rise with senior executives making a beeline towards the exit door. The last one to leave in July was Anirban Dey, the global head and chief business officer of Edge products at Infosys’ wholly-owned unit EdgeVerve. Infosys has seen a steady exit of top level executives over the last one-two years. Earlier last month, Infosys’ $500-million Innovation Fund’s Managing Director Yusuf Bashir, and the company’s head of mergers and acquisitions Ritika Suri resigned the firm.