Vishal Sikka's Resignation from Infosys and What Lies Ahead

Infosys chief quits in rift with founders

"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 incredible journey", Dr Sikka said in his resignation letter.

After news of Sikka's resignation, Infosys American Depositary Receipts has dropped as much as $1.43 per share, or almost 9 per cent, during intraday trading on Friday.

The Board rued that its efforts to resolve the concerns of the founders - who together own about 12.75 percent stake in Infosys - over the course of a year through a dialogue have not been successful.

Investors, who have been asking the company to return part of its cash hoard, lost $3.5 billion as Infosys's market value plunged on Friday following Sikka's resignation. "He will report to the Board", the IT major said in a statement.

To the high salaries of senior executives, the big issues reportedly relate including Sikka, particularly at a time when there is a slowdown in IT sector and people are losing jobs. "The board denounces the critics who have amplified and sought to further promote demonstrably false allegations which have harmed employee morale and contributed to the loss of the company's valued CEO".


During Sikka's tenure, Infosys grew substantially apart and made forays into Artificial Intelligence as well as other cutting-edge innovations, in a departure from its traditional strengths.

Holding a degree in electrical engineering from Bangalore University, U B Pravin Rao joined Infosys in 1986 and is now the chief operating officer (COO) of the company.

On Friday, Infosys announced the resignation of its Chief Executive Officer, Vishal Sikka.

Infosys could see a prolonged spell of challenges following MD & CEO Vishal Sikka's resignation.

Assuring shareholders, employees, customers and communities of not being distracted by Murthy's "misguided" campaign, the company said it would continue to adhere to the highest global standards of corporate governance as it executes its strategy of profitable growth for the benefit of all stakeholders. In February 2015, Infosys completed the acquisition of UK-based automation technology company, Panaya. Sikka's resignation comes after months of exchange of cold vibes between Infosys founders and management over a hefty severance pay and huge remuneration to top bosses.

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