In a shocking turn of incidents, Infosys MD and CEO Vikka Sikka resigned from his current post.
The board of directors of the IT giant accepted Sikka’s resignation as managing director and CEO of the company with immediate effect. He will now be serving as the executive vice-chairman.
U B Pravin Rao who has been appointed as the interim chief executive officer and managing director. Rao would be reporting to Sikka under the overall supervision and control of the company’s board.
The company, in a filing to BSE mentioned, “Sikka reiterated his belief in the in the great potential of Infosys, but cited among his reasons for leaving a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the company's transformation.”
The company’s succession plan for appointment of a new managing director and chief executive officer has already taken off and shall been operationalized by the board.
Infosys founder NR Narayana Murthy has been at loggerheads with Sikka, even going to the extent of saying that he felt the Silicon Valley import was more of a CTO material and not fit for CEO position, as reported by a business daily.
Cannot continue as CEO while defending against unrelenting, baseless/malicious and personal attacks, Vishal Sikka says in his blog. pic.twitter.com/ve7eSZl0VP— BloombergQuint (@BloombergQuint) August 18, 2017
The markets opened to plunging Infy stocks.
Sikka's resignation came in just a day ahead of the company’s board meeting which listed an agenda of proposal for huge share buyback.
Information source: economictimes
Title image: ibtimes