In a surprising development on Friday, Vishal Sikka resigned as MD and CEO of Infosys. In a letter to BSE, the Infosys board said that it had accepted Sikka’s resignation.
In a statement, the IT giant said, “In his notice of resignation to the board, Dr Sikka reiterated his belief 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.”
SIkka, for his part, termed personal attacks as one of the reasons for his resignation.
In his resignation email, Sikka said, “Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks. Allegations that have been repeatedly proven false and baseless by multiple, independent investigations. But despite this, the attacks continue, and worse still, amplified by the very people from whom we all expected the most steadfast support in this great transformation. This continuous drumbeat of distractions and negativity over the last several months/quarters, inhibits our ability to make positive change and stay focused on value creation.”
Sikka has been appointed as the Executive Vice-Chairman, Infosys said.
Infosys COO U B Pravin Rao has been named as the Interim -MD and CEO of the firm.
“The succession plan for appointment of a new Managing Director and Chief Executive Officer has been operationalised by the board and a search for the same has been commenced,” Infosys said.
The news of Sikka’s resignation tanked Infosys’s share by at least five percent.
More to follow