NEW DELHI: InfosysBSE -9.92 % on Friday said its board of directors has accepted the resignation of Vishal Sikka as managing director and CEO of the company with immediate effect. Sikka will now be the executive vice-chairman.
U B Pravin Rao has been appointed interim chief executive officer and managing director reporting to Sikka under the overall supervision and control of the company’s board.
In a filing to BSE, the company said, “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.”
The succession plan for appointment of a new managing director and chief executive officer has been operationalised by the board and a search for the same has been commenced, the company told exchanges.
The scrip was trading over 6 per cent down at Rs 952 around 10.30 am (IST).
Infosys founder NR Narayana Murthy took head on with Sikka and said he felt the Silicon Valley import was more of a CTO material and not fit for CEO position, a business daily reported today.
Differences were simmering between Murthy and Vishal Sikka with the former repeatedly criticising the latter’s policies in the organisation.
This is the second time that Infosys has plunged into a leadership crisis ever since the founder members retired from top management.
The company told BSE that its board was profoundly distressed by the unfounded personal attacks on the members of our management team that were made in the anonymous letters and have surfaced in recent months.
“A series of careful investigations found no merit to the unsubstantiated and anonymous allegations that had been asserted. The board denounces the critics who have amplified and sought to further promote demonstrably false allegations which have harmed employee morale and contributed to the loss of the company’s valued CEO,” it said in a BSE filing.
Sikka’s resignation comes a day ahead of a company board meeting which was supposed to consider a proposal for huge share buyback.