Anguished by allegations: Narayana Murthy

Marsha Scott
August 20, 2017

Vishal Sikka resigns as Infosys CEO, MD: The Board has been criticised several times by Narayana Murthy in the past.

While an independent probe absolved the board of any wrong doing, Murthy kept the pressure on making the full contents of the investigation report public.

It was predicted that Sikka's expertise for working with product companies like SAP could help leverage Infosys to adapt with new technologies and innovations.

Infosys COO U.B. Pravin Rao was named as interim managing director and CEO of the Bengaluru, India-based systems integrator. "Mr. Murthy's continuous assault, including this latest letter, is the primary reason that the CEO, Dr. Vishal Sikka, has resigned despite strong Board support", the letter read. After a couple of years of allegations and counter allegations, the conflict now seems to have panned out as an all-out war between the Infosys board and its founders. The board responded to the email, which was promptly and widely picked up by the media, saying that "Murthy's letter contains factual inaccuracies, already-disproved rumors and statements extracted out of context from his conversations with Board members". Chairman Sheshasayee had put the plan in concrete terms in the press conference held after Sikka's resignation.

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Sikka has been under pressure since months and according to a Bloomberg report he smiled less and didn't crack as much jokes as he used to in meetings, "It is my job to do my job". Mr. Murthy's campaign against the board and the company has had the unfortunate effect to undermine the company's efforts to transform itself.

Sikka, the first non-founder chief executive of the company, announced his sudden resignation following a protracted war of words with the founders group, led by Narayana Murthy. Some of the key portfolio investors in the company include Vanguard, Oppenheimer, Abu Dhabi Investment Authority and the government of Singapore.

Over concerns of securities fraud or other unlawful business practices by officers or directors, Pomerantz Law Firm is also starting an investigation against the company. When the bourses closed on Friday, the Infosys stock had plunged 9.57 per cent to end at Rs 923.15 on the BSE.

Other reports by MaliBehiribAe

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