With new CEO in place, Nandan Nilekani steps back at Infosys
Nandan Nilekani, co-founder and chairman of Infosys Ltd is increasingly playing a less active executive role at India’s and has handed over responsibilities to the new chief executive Salil Parekh and his top lieutenants, according to three people familiar with the developments.
Since returning to Infosys as non-executive chairman on August 24, Nilekani for the most part of his stint operated like a “super CEO”, playing a hands-on executive role to steer the company through one of its most tumultuous times in the wake of former chief executive Vishal Sikka’s ouster.
Up until December, Nilekani spent at least two to three days a week working out of Infosys’s corporate headquarters in Bengaluru, reviewing the performance of the business unit heads, strategising and regularly calling or meeting the company’s largest clients, which farm out hundreds of millions of dollars worth of business to Infosys every year.
That has changed since Parekh took office on January 2.
Since then, Nilekani has gradually cut his visits to office to once or twice a fortnight, allowing the CEO freedom to focus on executive responsibilities — even though both Parekh and Nilekani remain in regular contact over the phone, the people cited above said, requesting anonymity.
This move, according to one of the three executives cited above, has created a “clear delineation” between the roles of the CEO and the non-executive chairman.
Significantly, according to the CEO’s employment contract, Parekh, like his predecessor Sikka, can use the ‘Good Reason’ clause to terminate his employment agreement with Infosys, and still be eligible for severance payouts, if Infosys appoints an executive chairman.
Nilekani taking a step back easily counts as one of the most significant developments over the past three months at India’s second largest technology outsourcing firm.
To be sure, Nilekani taking a step back does not mean that he plans to leave Infosys anytime soon and he continues to be active on board-level matters, according to the three people, who added that he will continue as chairman at least until March 2019. The people mentioned above highlighted the three priorities that Nilekani has on his agenda. Firstly, to further re-constitute the current board and appoint new board members. Secondly, to find a long-term successor to head the board and, finally, to make sure that there is harmony between all key stakeholders, including the promoters and the board.
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