 "Vishal Sikka is Infy's first non-founder CEO")
Ending all speculation, Infosys, India’s second largest IT services company today announced Vishal Sikka, the former chief technology officer and member of executive board at enterprise software maker SAP, as the new CEO & MD.
Sikka will be inducted as a whole-time director of the board on June 14, the Bangalore-based company said in a release. He will then formally take over the mantle of CEO & MD from S D Shibulal on August 1.
Sikka will be inducted as a whole-time director of the board on June 14, the Bangalore-based company said in a release. He will then formally take over the mantle of CEO & MD from S D Shibulal on August 1.
Business Standard (Read here) was the first one to report on Infosys considering Sikka for the top post on May 5, 2014, the day when the German software maker announced his resignation from the company.
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“I am pleased with the selection of Dr. Vishal Sikka as our new CEO. Vishal brings valuable experience as a leader of a large, global corporation. His illustrious track record and value system make him an ideal choice to lead Infosys,” said Executive Chairman, N R Narayana Murthy.
With this, Infosys has made all the key changes that are expected to help Sikka operate independently. The company also said that Murthy, the co-founder of the company who returned back as the executive chairman in June last year has decided to step aside. He will now be chairman emeritus whereas K V Kamath, the former chairman and now lead independent director will become the non-executive chairman of the Board with effect from October 11, 2014.
Murthy along with Kris Gopalakrishna, now executive vice chairman at Infosys will voluntarily step down on June 14, 2014.
However, they will continue on the Board till October 10, 2014 in order to facilitate a smooth transition of responsibilities, the company said. S D Shibulal, the present CEO & MD of the company will step down from July 31, 2014.
With this, the company also said that the office of the Executive Chairman will be dissolved with effect from June 14, 2014, and Rohan Murty, executive chairman to the chairman will leave the company with effect from the same day. Rohan Murty’s role was co-terminus with that of Narayana Murthy. Besides, the remaining members of the chairman’s office will take up other responsibilities in the company.
The company has promoted U B Pravin Rao, currently president and whole-time director, as the Chief Operating Officer. This appointment will be effective from June 14, 2014. Infosys had long discontinued with the role of COO after Shibulal took over as the CEO of the company.
Along with Rao, the company also announced the elevation of twelve senior leaders to the position of Executive Vice President with additional responsibilities.
Today’s development is expected to put to rest the uncertainty around the company’s CEO selection which in the recent past had triggered a slew of exits including many senior leaders such as B G Srinivas, the then president, and Ashok Vemuri who was then heading North America and manufacturing vertical in the role of a senior vice president and board member.
Besides, this is for the first time that the Bangalore-based company will see none of its co-founders associated with the company in any executive role.
Snapshot of the transition
Snapshot of the transition
- June 14, 2014: Former SAP AG executive Vishal Sikka to be inducted as a whole-time director of the Board and CEO & MD (Designate)
- June 14, 2014: N R Narayana Murthy and S Gopalakrishnan to step down as Executive Chairman and Executive Vice Chairman, respectively, but, they will continue on the Board as the Non-executive Chairman and Non-executive Vice Chairman, respectively till October 10, 2014
- June 14, 2014: Executive Chairman’s (Murthy's) office will be dissolved. Rohan Murty will also leave the company on the same day
- June 14, 2014: U B Pravin Rao, President and whole-time director, to become Chief Operating Officer
- July 31, 2014: S D Shibulal will step down as CEO & MD and also from the Board
- July 31, 2014: Srinath Batni, whole-time Director of the company, will also step down from the Board
- August 1, 2014: Sikka will formally take over as CEO & MD from S D Shibulal after one and half months of transition
- October 11, 2014: Murthy will be designated as Chairman Emeritus. K V Kamath will become the Non-executive Chairman of the Board
Tracing Infosys after Murthy's return
- June 2013: Co-founder N R Narayana Murthy returns to Infosys as executive chairman
- 5%: Surge in Infosys stock on BSE in first trading session after Murthy’s return
- 30%: Stock surge over the next three months
- 29%: Rise in Infosys’ share price in the past 12 months — a weak performance when compared with peers TCS’ and Wipro’s 44% and 55% surge
- 4.8%: Infosys’ revenue growth in the 3 quarters of 2013-14 that Murthy was at helm of affairs, slower pace than TCS’ 6.5%, Wipro’s 6.4% and Cognizant’s 6.3%
- 7-9%: Infosys revenue growth guidance for FY15, much less than Nasscom’s projection of 13-15% for the Indian IT services industry
- Top-level exits: At least 10 key executives, including board members Ashok Vemuri, V Balakrishnan and B G Srinivas, seen as contenders to the CEO post, quit in the past 12 months