Shares of Infosys cracked down by 6 percent after Vishal Sikka resigned as the managing director and chief executive officer of the company with immediate effect, the IT major said in an official statement on Friday.
U B Pravin Rao will be heading the company in both the roles as an interim replacement. While Mr Sikka has been appointed as the vice-chairman of the firm, Infosys added. Pravin is also Chairperson of Infosys BPO. He comes with 30 years of experience. According to a press release, Rao oversees the key functions of global sales, global delivery and business enabling functions.
Shares of the company opened at ₹1021.50 and touched a high and low of ₹1021.50 and ₹953.50, respectively. Benchmark BSE Sensex was down 261.16 points, or 0.82 per cent, at 31,553.57.
Vishal Sikka cited “a continuous stream of distractions and disruptions” as the reason for his resignation, reported by news agency Reuters.
Within the last few months, Infosys has witnessed a number of top-level executives resigning. That includes include Anirban Dey (Global head and chief business officer of Edge products), Yusuf Bashir (MD, Infosys Innovation Fund) and Ritika Suri (executive vice-president).
Reacting to the series of resignation, Mr Sikka said that it should be of no concern as the attrition is far lower than other firms and the exits should not be looked at as a problem for Infosys’s future.
“Not at all. This is a complete nonsensical myth that has been propagated in some parts,” Sikka told in a television interview when asked if the series of exits of senior talent was a cause for concern”, he had said.
“It happens in every company. We actually did an analysis, both in terms of our own past as well as in terms of the other companies in our industry. And there are far more executives who have left every other company that we could think of,” Sikka had added.
After much reflection, Vishal Sikka has concluded that it is indeed time for him to leave his current positions as MD and CEO, and h have communicated my resignation to Sesh.
He will be working closely with Sesh, Ravi, Pravin, with all of them, and the senior management team to plan out the details and the timelines to ensure a smooth transition and in the meantime, continue their work without disruption, and ensuring that they protect the company, the employees, the clients, and the interests of every shareholder.
Over the last many months and quarters, the company has 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 Inf the sys’s ability to make positive change and stay focused on value creation.