Infosys CEO Vishal Sikka has resigned from the global software and technology outsourcing company amid news about a board room tussle.
Resignation letter of Vishal Sikka
Vishal Sikka said: “I started my journey as the CEO of this company with a mission to transform it on the basis of software, especially artificial intelligence, and innovation, enabled by education. Three years later, I feel proud of our progress and achievements, from profitable revenue growth to rapid purposeful adoption of software, new services and grassroots innovation, to the extraordinary recognition from our clients worldwide.”
Vishal Sikka was the first outsider to join Infosys as CEO. Earlier, Infosys selected founders to run the technology outsourcing company.
Vishal Sikka, who came from SAP, resigned from Infosys in the wake of 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.
Infosys board said “it is profoundly distressed by the unfounded personal attacks on the members of our management team that were made in the anonymous letters and have surfaced in recent months.”
Vishal Sikka will be appointed executive vice chairman effective today, and will hold office until Infosys hires a permanent chief executive officer. The deadline for finding a new CEO is March 31, 2018.
UB Pravin Rao will be the interim chief executive officer and managing director reporting to Vishal Sikka under the overall supervision and control of the company’s Board.
Vishal Sikka will receive an annual salary of $1 during his tenure as executive vice chairman of Infosys.
During Vishal Sikka’s tenure as CEO, Infosys revenues have grown from $2.13 billion in Q1 FY 2015 to $2.65 billion this past Q1, with strong margin performance and cash generation.
Infosys said Vishal Sikka’s approach to profitable growth delivered increase in liquid assets (including cash and cash equivalents) from $4.9 billion in June 2014 to $6.1 billion in June 2017, while paying dividends of over INR 19,000 crore over these three years.
“Vishal Sikka has made a seminal contribution to the transformation of Infosys, and he will be remembered for infusing a refreshed sense of direction, purpose and energy in the organization,” said R Seshasayee, chairman of the Infosys Board.