Murthy to address investors today
DAMAGE CONTROL? Move aims to restore falling investor confidence at the software major
Days after the board of Infosys Ltd blamed NR Narayana Murthy for Vishal Sikka’s decision to step down as chief executive, the founder and former CEO of Infosys is set to address investors and assuage concerns, amid a broader tussle between the board and the founders that has severely dented investor confidence in the company and wiped out thousands of crores in market value. In a highly anticipated address since Friday’s press conference announcing Sikka’s departure, Murthy will be speaking to investors at a conference hosted by brokerage firm Investec India on Wednesday.
Murthy is expected to answer questions and address concerns over the events of the past few days which has spooked investors, especially after the Infosys board released a scathing sixpage letter on Friday, blaming Murthy unequivocally for Sikka’s decision to step down. Over the past three days, Infosys has lost nearly ₹34,000 crore in market value.
A few days before Infosys issued the statement against Murthy, he had written a letter dated August 9 to half a dozen of his closest advisers in which he claimed that at least three Infosys board members had complained to him that Sikka was not CEO material, but more of a chief technology officer (CTO).
“Mr Murthy’s continuous assault, including this latest letter, is the primary reason that the CEO, Dr Vishal Sikka, has resigned despite strong board support,” said a statement by Infosys to bourses on Friday. “Mr Murthy’s campaign against the board and the company has had the unfortunate effect to undermine the company’s efforts to transform itself. The board has been engaged in a dialogue with the founder to resolve his concerns over the course of a year, trying earnestly to find feasible solutions within the boundaries of law and without compromising its independence. These dialogues have unfortunately not been successful.”
Murthy had responded to the statement from Infosys, saying that he was “extremely anguished by the allegations, tone and tenor of statements made by the board,” and that it was below his dignity to respond to “baseless insinuations.”
It is not clear whether on Wednesday Murthy plans to respond to the allegations made by the board. In a short statement on Friday, Murthy had said that he would respond “in the right manner and in the right forum and at the appropriate time.”