Infosys chief Sikka resigns after ‘months of false attacks’
THE chief executive of Indian IT services giant Infosys has resigned from the top job after issuing an extraordinary statement in which he complained of months of “false, baseless, malicious and increasingly personal attacks” from the company’s founder.
The resignation of Vishal Sikka shocked investors, sending the company’s share price down by nearly 10pc and wiping nearly £3bn off the company’s market value, as it highlighted the deep rift between the board and founders at one of India’s largest IT service firms.
The founders, including Narayana Murthy, still own 12.75pc of the company and have repeatedly criticised its management, particularly on issues of pay.
In his resignation letter, Dr Sikka said: “Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks.
“This continuous drumbeat of distractions and negativity … inhibits our ability to make positive change and stay focused on value creation.” He was supported by the Infosys board, which released a statement saying that Dr Murthy had “undermined” the company.
“Dr Murthy’s continuous assault … is the primary reason that the CEO, Dr Vishal Sikka, has resigned despite strong support,” the company said.
“Dr Murthy’s campaign against the board and the company has had the unfortunate effect to undermine the company’s efforts to transform itself.”
According to reports, a recent email from Dr Murthy had said: “All that I hear from at least three independent directors are complaints about Dr Sikka. They have told me umpteen times that Dr Sikka is not CEO material but CTO [chief technology officer] material.”
Dr Sikka was hired to the top job in 2014, when he became the first chief executive of the company who was not a founder. He was previously on the executive board at German software firm SAP.
Under his stewardship, Infosys has moved away from traditional IT services as the $150bn (£117bn) industry struggles to win new western clients.
It has faced growing pressure as the Trump administration in the US, its leading market, has revamped a temporary visa programme that was used by many tech companies to bring workers into the country.
Apurva Prasad, an analyst at HDFC Securities, said: “There is some level of uncertainty as we wait until the new CEO and managing director comes in, and it does put the company in some form of uncertainty in terms of the strategy.”