The board running Infosys on Friday alleged that “continuous assaults” by the company’s co-founder, NR Narayana Murthy, had forced Vishal Sikka to resign as the chief executive officer and managing director. In a letter to the stock exchange, the Infosys board said that a letter Murthy wrote and released to the media had accused them and the firm’s management of failing to curb the alleged “falling corporate governance standards” at the company, Mint reported.
Murthy’s claims are factually incorrect, the Infosys board said, accusing him of writing about “already-disproved rumours and statements extracted out of context from his conversations with board members”. The firm assured its shareholders and employees of its commitment to follow the highest international standards, saying Infosys will not be distracted by Murthy’s “misguided campaign”.
“Murthy’s campaign against the board has had the unfortunate effect to undermine the company’s efforts to transform itself,” Infosys said, adding that dialogue attempting to resolve differences with Murthy were unsuccessful.
Responding to the boards allegations, Murthy said he was “extremely anguished” by the statement’s “tone and tenor”. “It is below my dignity to respond to such baseless insinuations,” he said. “I will reply to the allegations at an appropriate time on the right forum.”
Sikka steps down from CEO’s post
Vishal Sikka resigned as the chief executive officer and managing director of Infosys on Friday. UB Pravin Rao, the chief operating officer, has been appointed the interim MD and CEO of the tech major. Sikka has been made the executive vice chairman and will hold office till a permanent CEO and MD is appointed.
The company expects a new chief executive to take charge by “no later than” March 31, 2018. Rao will report to Sikka for the time being under the “overall supervision and control” of the Infosys board.