Business

Infosys chief quits after rift with company's founders

MUMBAI: Mr Vishal Sikka has resigned as the chief executive of Infosys, the Indian software giant announced yesterday, amid growing acrimony between the company's board and founders.

Mr Sikka said the "increasingly personal" attacks had hit morale at the company, which has been trying to keep up with the industry's changes.

"Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks," he said.

"The distractions that we have seen, the constant drumbeat of the same issues over and over again, while ignoring and undermining the good work that has been done, take the excitement and passion out of this amazing journey."

Shares in the company fell by more than 7 per cent after the surprise announcement.

Mr Sikka had come under fire in recent months from some of the founders of the company on issues related to corporate governance and salary increases for top executives.

Yesterday, he said he would stay on temporarily as executive vice-chairman to ensure a "smooth transition".

Infosys veteran U. B. Pravin Rao, the chief operating officer, will take over as interim chief executive.

Analysts said Mr Sikka had helped steer Infosys back on track, and his resignation reflected badly on the company.

"Sikka's letter indicates there was a directed attack on him leading to his resignation, which again makes the company look bad for investors," IT analyst Baburajan Kizhakedath said.

"It is a tough time for Infosys in the market, and the board couldn't handle investors, media or its own warring factions," he added.- REUTERS

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