Infosys MD & CEO Vishal Sikka Steps Down, Shares Tumble
Zacks Investment Research | Aug 17, 2017 10:11PM ET
In a sudden move, Vishal Sikka stepped down as the chief executive officer and managing director of Infosys Limited (NYSE:INFY) earlier today, citing conflicts that deteriorated into mudslinging under an anonymous name. The move led to deep unrest among investors, causing shares to plunge 10.8% at one point in pre-market trading.
The surprise move came amid intensifying animosity between the board and the co-founders, led by NR Narayana Murthy. It seems that a seven-month-long confrontation between the company’s founders on one hand, and Sikka and the board on the other, culminated into this drastic move. This is the second time that Infosys has plunged into a leadership crisis, after the founding members retired from the top management.
Sikka had taken over the reins of India’s second largest software and outsourcing company in June 2014.
Differences in New & Old Leadership
Sikka cited a relentless stream of distractions and disruptions over the recent quarters, which were becoming increasingly personal and negative, as of late, as one of the leading reason for his step. He asserted that the “very public noise around us” had created a shaky atmosphere, making it difficult for management to function effectively.
Differences had been simmering between Murthy and Sikka for quite some time now, with the former repeatedly disparaging Sikka's policies.
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