Infosys to appoint Dr. Vishal Sikka as Chief Executive Officer & Managing Director
Bangalore - June 12, 2014 : The Infosys Board of Directors is pleased to announce the selection of Dr. Vishal Sikka as the Chief Executive Officer and Managing Director (CEO & MD) of the company. Dr. Sikka will be inducted as a whole-time director of the Board and CEO & MD (Designate) on June 14, 2014.
Mr. N.R. Narayana Murthy and Mr. S. Gopalakrishnan will voluntarily step down as Executive Chairman and Executive Vice Chairman, respectively, on June 14, 2014. In order to facilitate a smooth transition of responsibilities, they will continue on the Board till October 10, 2014 as the Non-executive Chairman and Non-executive Vice Chairman, respectively
Mr. K. V. Kamath will become the Non-executive Chairman of the Board on October 11, 2014
Mr. Murthy will be designated as Chairman Emeritus with effect from October 11, 2014 in recognition of his contributions to the company
Mr. S. D. Shibulal will step down as CEO & MD and from the Board on July 31, 2014
Mr. Srinath Batni, whole-time Director of the company, will step down from the Board on July 31, 2014
In addition, the company has elevated twelve leaders to the position of Executive Vice President with additional responsibilities
The Executive Chairman’s office will be dissolved with effect from June 14, 2014. Dr. Rohan Murty, whose appointment was co-terminus with the Executive Chairman, will leave the company on June 14, 2014. The remaining members of the Chairman’s office will take up other responsibilities in the company.
India’s second largest software exporter InfosysBSE -0.42 %, which on Wednesday rewarded chief executive Vishal Sikka with an extended tenure for helping the former sector bellwether regain industry-leading numbers this fiscal year, has given the former SAP product chief a bumper raise in annual compensation, elevating him to an elite global club of tech CEOs.
As part of the new proposed compensation structure, Sikka stands to make about $11 million every year, starting January 2017 ..
The Infosys board raises Sikka’s compensation by 55% to $11 million. A few months later, only around 23.57% of promoter votes are cast in favour of a resolution reappointing Sikka as CEO. He was appointed CEO in 2014 for a five-year term. “I am not disappointed. I don’t care. I have 100% backing of the board and support from the shareholders,” Sikka says. “I still respect the founders. Why they did this, you should ask them.
May 2016: Proxy advisory firms and analysts question the Rs23.02 crore severance pay, salary, and other benefits paid to Bansal.
Sept. 2016: Infosys stops paying the balance of Rs17.38 crore Bansal was to receive, as some of the company’s founders express their displeasure.
Nov. 2016: In a newspaper interview, Sikka says his job has affected his physical well-being. “My health has suffered for sure. It is a very complex transformation we are doing (at Infosys), far more complex than people understand,” Sikka says.
The founders, including Murthy, SD Shibulal, and Kris Gopalakrishnan meet V Seshasayee and Vishal Sikka, expressing their unhappiness with Seshasayee, citing corporate governance issues.
Feb. 2017: In a scathing interview, Murthy questions the corporate governance practice at Infosys. “We have seen a concerning drop in governance standards at Infosys. Let me illustrate this with just one example. Providing huge severance pay (with 100% variable) to some departing employees while giving only 80% variable for employees in the company is one such example. Such payments raise doubts whether the company is using such payments as hush money to hide something,” he says.
■ April 2017: Founder Murthy criticizes salary hike given to Chief Operating Officer Pravin Rao.
■ April 2017: Company announces $2 billion cash return to shareholders and appoints independent director Ravi Venkatesan as co-chairman of board, moves seen aimed at placating some founders and former executives who were critical about the management.
June 2017: Infosys scraps Sikka’s target of $20 billion in revenue by 2020. Reports emerge that the founders were planning to sell their stakes. “We would like to clarify the reports in the media speculating on the plans of stake sale by the promoters. This speculation has already been categorically denied by the promoters,” an Infosys spokesperson says in a statement.
Infosys declines a request from Murthy to make public the report of Gibson Dunn & Crutcher. Sikka puts in his papers. The Infosys board however backs Sikka and says that the 50-year-old CEO quit due to Murthy’s continuous assault. “Murthy’s campaign against the board and the company has had the unfortunate effect to undermine the company’s efforts to transform itself,”