20 September 2017
Visit http://response.ncr.com

Infosys CEO quits after fall-out with founders

18 August 2017  |  8414 views  |  0 Indian flag 2

The CEO of Indian IT services giant Infosys has unexpectedly resigned, citing a falling out with the company's founders.

The sudden departure of Vishal Sikka took the stock market by surprise, resulting in an 8% drop in the company's share price.

The Infosys board has been engaged in a war of words with the company's founders for some time. In his resignation letter, Sikka referred to "false, baseless, malicious and increasingly personal attacks" from the founders that had undermined the company.

"This continuous drumbeat of distractions and negativity inhibits our ability to make positive change and stay focused on value creation."

Sikka, a former board member at German IT firm SAP with a penchant for t-shirts rather than suits, was brought in to lead Infosys in 2014 becoming the first non-founder to take the CEO role.

However the relationship soured in recent months with the founders, who retain a 12.75% share in the company, voicing a growing number of complaints about various governance issues, including a pay rise granted to Sikka and several severance packages to other executives. 

A company statement singled out founder Narayana Murthy as "the primary reason" for Sikka's resignation "despite the strong support" of the board. 

The statement also said that the founders' attacks had thwarted Sikka's attempts to transform the company. These efforts had also been hampered by what Sikka had earlier referred to as the "challenging environment out there".

Infosys had set itself an ambitious revenue target of $20bn by 2020 - one that may now be under threat amid both the short-term uncertainty caused by Sikka's unexpected departure and some of the longer-term issues facing the $150bn Indian IT services industry, such as the shrinking number of deals with Western clients and new Visa rules from the US, its largest overseas market. 

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Infosys to buy CX studio Brilliant Basics

Infosys to buy CX studio Brilliant Basics

04 August 2017  |  5429 views  |  0 comments | 2 tweets | 1 linkedin
Infosys re-purposes 3000 jobs as RBS spin off of W&G goes awry

Infosys re-purposes 3000 jobs as RBS spin off of W&G goes awry

17 August 2016  |  5854 views  |  0 comments | 2 tweets | 5 linkedin
Infosys to create 250 fintech jobs in Ireland

Infosys to create 250 fintech jobs in Ireland

07 December 2015  |  5577 views  |  0 comments | 10 tweets | 5 linkedin
Infosys wins AIB outsourcing deal; establishes $10 million innovation fund

Infosys wins AIB outsourcing deal; establishes $10 million innovation fund

03 July 2015  |  7950 views  |  1 comments | 4 tweets | 4 linkedin
Speculation mounts over Infosys bid for Logica

Speculation mounts over Infosys bid for Logica

21 May 2010  |  11540 views  |  0 comments
Infosys bidding for BBVA contract

Infosys bidding for BBVA contract

27 May 2008  |  7408 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.temenos.comvisit www.vasco.com

Who is commenting?

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
11158 views comments | 24 tweets | 40 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10473 views comments | 6 tweets | 17 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9242 views comments | 6 tweets | 3 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
7735 views comments | 5 tweets | 4 linkedin
ING moves into digital wealth management with Scalable CapitalING moves into digital wealth management w...
7514 views comments | 14 tweets | 15 linkedin

Featured job

Find your next job