Infosys plunges as Vishal Sikka resigns from the CEO and MD post

Vishal Sikka, the Chief Executive Officer and Managing Director of Infosys, send the shockwave across the nation after he resigns from the post. AGS Manikantha, Company Secretary, confirmed the development in a letter to stock exchanges revealing that the resignation was accepted in a board meeting on August 18. Pravin Rao will be the interim CEO till the time company finds the perfect match for the post. Sikka will now be the executive vice-chairman of the company. “The succession plan for appointment of a new Managing Director and Chief Executive Officer has been operationalised by the Board and a search for the same has been commenced,” the letter read

As the news of Infosys CEO and Managing Director Vishal Sikka’s resignation broke in, the benchmark BSE Sensex plunged by 207.75 points or 0.65 per cent to 31,587.71 in early trade trade on Friday. Infosys shares also went down more than 7 percent in early trading.

“Vishal 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. His vision for the future of the industry and the Company will remain a strong reference point as we chart the future course for Infosys in this new era in our rapidly evolving industry. On behalf of our entire board of directors, I wish him well for the future,” said R. Seshasayee, Chairman of the Board.

Vishal Sikka said: “I started my journey as the CEO of this iconic 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. I am deeply grateful to our Board for providing me with strong support and guidance, and especially wish to thank our Chairman for his extraordinary and thoughtful stewardship, and look forward to working together on a smooth transition. Congratulations to my friend and partner Pravin on his appointment, and heartfelt thanks to all Infoscions for their warmth, amazing support and the sparks of their imagination.”

In his resignation letter, Sikka said: “After much reflection, I have concluded that it is indeed time for me to leave my current positions as MD and CEO, and I have communicated my resignation to Sesh. I will be working closely with Sesh, Ravi, Pravin, with all of you, and the senior management team to plan out the details and the timelines to ensure a smooth transition and in the meantime, continue our work without disruption, and ensuring that we protect our company, the employees, the clients, and the interests of every shareholder. You can count on my commitment to this.

“Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks. Allegations have been repeatedly proven false and baseless by multiple independent investigations. But despite this, the attacks continue, and worse still, amplified by the very people from whom we all expected the most steadfast support in this great transformation. This continuous drumbeat of distractions and negativity over the last several months/quarters inhibits our ability to make positive change and stay focused on value creation.”

Who is UB Pravin Rao, the interim CEO of Infosys

U B Pravin Rao is currently the Chief Operating Officer responsible for the entire portfolio of the company’s offerings. According to a press release, Rao oversees the key functions of global sales, global delivery and business enabling functions. He drives and oversees the continuous renewal of key processes, systems and policies across the company in client relationship management, sales effectiveness, delivery excellence, quality, talent management and leadership development. Pravin is also Chairperson of Infosys BPO. He comes with 30 years of experience.

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