You are using an older browser version. Please use a supported version for the best MSN experience.

Vishal Sikka resigns: Here’s how the blame game is playing out at Infosys

LiveMint logoLiveMint 18-08-2017 Livemint

New Delhi: Infosys chief executive officer and managing director Vishal Sikka on Friday resigned from his post, citing “unrelenting, baseless/malicious and increasingly personal attacks” as the main reason for his move.

Sikka has been facing sharp criticism led by Infosys founder N.R. Narayana Murthy from the last one and a half years during over the company’s acquisition of Panaya and a large severance payout to former chief financial officer Rajiv Bansal. More recently, Murthy, who in an email to advisors, quoted three independent directors of the company as saying that Sikka was not “CEO material”, but more suited to be the chief technology officer.

Sikka’s resignation and related developments in Infosys has has sparked a bitter blame game. Here are some of those reactions:

■ Vishal Sikka: “It is clear to me that despite our successes over the last three years, and the powerful seeds of innovation that we have sown, I cannot carry out my job as CEO and continue to create value, while also constantly defending against unrelenting, baseless/malicious and increasingly personal attacks,” the former Infosys MD & CEO said in his blogpost.

■ Infosys Board: “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. Mr. Murthy’s campaign against the board and the company has had the unfortunate effect to undermine the company’s efforts to transform itself. The board has been engaged in a dialogue with the founder to resolve his concerns over the course of a year, trying earnestly to find feasible solutions within the boundaries of law and without compromising its independence. These dialogues have unfortunately not been successful,” said a statement by Infosys to the stock exchange on Friday.

■ Ravi Venkatesan: “The management is highly distressed by the continuing allegations against Sikka and Board members,” PTI quoted the Infosys co-chairman. He also said, “succession planning a high priority for board and it is important that next CEO buys into vision, culture and is people- oriented.”

■ N. R. Narayana Murthy: “I voluntarily left the Board in 2014 and am not seeking any money, position for children or power. My concern primarily was the deteriorating standard of corporate governance which I have repeatedly brought to the attention of the board,” said the Infosys Ltd co-founder in his statement on Friday.

■ R. Seshasayee: “No change in buyback plans, have made commitment on how much and when to return cash to shareholders. To suggest that renowned law and audit firms will connive with board, overlook ‘misdeeds’ of CEO and post clean report is completely untenable. To give shareholders task of taking up anonymous complaints and appointing committee for probe the best way to destroy an organisation,” PTI quoted the Infosys chairman.

More From LiveMint

image beaconimage beaconimage beacon