Vishal Sikka resigns from Infosys
In a move that surprised the industry, Vishal Sikka, the CEO and MD of Infosys has resigned. UB Pravin Rao, Director of Infosys has been appointed as interim CEO. Sikka's resignation was accepted at a board meeting on August 18. However, he will continue to stay on in the company until a successor is appointed. The announced has impacted the Bellwhether's stock price, which tanked 6 per cent.
Sikka's resignation was confirmed by Company Secretary AGS Manikantha. A press release issued by Infosys said: Sikka has been appointed executive vice chairman effective today (August 18), and will hold office until the new permanent Chief Executive Officer and Managing Director takes charge, which should be no later than March 31, 2018. Sikka will continue to focus on strategic initiatives, key customer relationships and technology development. He will report to the Company’s Board. UB 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 his resignation letter, Sikka said: “After much reflection, I have concluded that it is indeed time for me to leave my current positions as MD and CEO, and I have communicated my resignation to Sesh. I will be working closely with Sesh, Ravi, Pravin, with all of you, and the senior management team to plan out the details and the timelines to ensure a smooth transition and in the meantime, continue our work without disruption, and ensuring that we protect our company, the employees, the clients, and the interests of every shareholder. You can count on my commitment to this.
“Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks. Allegations that have been repeatedly proven false and baseless by multiple, independent investigations. But despite this, the attacks continue, and worse still, amplified by the very people from whom we all expected the most steadfast support in this great transformation. This continuous drumbeat of distractions and negativity over the last several months/quarters, inhibits our ability to make positive change and stay focused on value creation.”
Discord and disagreement between the original founders of the company and Sikka was well known and widely publicised. In recent weeks Co-chairman Ravi Venkatesan spoke about getting the promoters and the current management together, to work as "one-Infosys".
Sikka has also been under tremendous pressure to deliver outstanding results and to find new revenue opportunities.
