Following continuous attacks from company founders and shareholders regarding corporate governance, Vishal Sikka, the MD & CEO of India’s second largest IT services firm Infosys Ltd, has resigned.
U.B. Pravin Rao has been appointed as the interim MD & CEO of Infosys.
Sikka was the first non-founder chief executive and had recently completed three years at Infosys. Previously he was with SAP.
In his notice of resignation to the company’s Board, Sikka said continuous stream of distractions and disruptions over the recent months, which were increasingly personal, prevented the management from accelerating the company’s transformation.
The Board acknowledged Sikka’s reasons for resignation and said it regrets his decision. It expressed its distress over unfounded personal attacks on the management team, through anonymous letters, which later investigations found to be untrue.
Effective Friday, Sikka has been appointed Executive Vice Chairman. He would be in office until the new permanent CEO and MD takes charge on March 31, 2018.
After taking over in August 2014, Sikka faced business and cultural challenges in the backdrop of changing focus of global clients towards digital technology. Though Sikka brought significant improvement on digital transformation fronts under his leadership, the changes did not result in better returns for its shareholders and the market capital eroded.