In less than a week of Vishal Sikka resigning as MD & CEO of Infosys, the Bengaluru-based IT software services exporter appointed Nandan Nilekani, one of the company’s co-founders, as the non-executive chairman. Simultaneously, R Seshasayee and Ravi Venkatesan resigned from the company as non-executive chairman and co-chairman.
U B Pravin Rao will continue as the interim MD & CEO of the company.
The company will also hold two investor calls on Friday (August 25), one at 10 am IST (12.30 am EST; 12.30 pm Singapore/HK time; 5.30 am London time while the second investor call will take place at 6 pm IST (8.30 am EST; 8.30 pm Singapore/HK time; 1.30 pm London time).
In another swift development, the company settled Sikka’s dues with immediate effect, who consequently, exits within a week of being appointed as executive vice-chairman as part of the transition process. Besides, Prof. Jeffrey Lehman and Prof. John Etchemendy, two independent directors, have also stepped down. Ravi Venkatesan will continue as independent director.
Also read: ‘Kshatriya warrior’ Vishal Sikka quits Infosys; share price hits 3-year low
“Nandan is the ideal leader for Infosys at this stage in the Company’s development. His appointment will allow Infosys to focus on the strategic changes it needs to make in order to capitalize on the attractive opportunities in the years ahead,” Seshasayee was quoted as saying in a company statement.
Sikka also welcomed the company’s decision to appoint Nilekani. “Last week I said that my remaining on the Infosys Board was to primarily enable a smooth transition. In Nandan, we have found an ideal leader to manage this transition,” he said in the statement.
Nilekani had earlier served as the MD & CEO of Infosys between March 2002 and April 2007 after which he became co-chairman. Later, he stepped down as co-chairman and member of the company’s board in June 2009 on being appointed as the chairperson of the Unique Identification Authority of India (UIDAI), the body that launched the 12-digit biometric identity Aadhaar.
Vishal Sikka’s dues settled at record speed
In an equally swift development, the company settled Sikka’s dues even before the new agreement appointing him as executive vice-chairman could be executed.
“Dr. Sikka will receive 90 days’ base pay in lieu of notice of $246,575, a variable pay of $ 205,572 and company-paid COBRA (employee benefits) for 90 days. All equity awards outstanding as on separation date to the extent such awards are unvested will terminate on the date of separation. All equity awards that vested during his employment with the Company will remain as vested as per the terms of the equity plan and award agreement A separation agreement reflecting this and other terms such as a mutual release and non-disparagement obligation has been approved by the Board,” the company said in the statement.
The company will address the media at 4 pm on Friday.
Also read: Infosys gains after former CFO bats for Nandan Nilekani’s return
The announcement is likely to lift Infosys share price when stock exchanges open next Monday since they will be closed tomorrow for Ganesh Chaturthi and later for the weekend.
The Infosys stock closed 2.01 percent higher at Rs 912.50 on Thursday on the Bombay Stock Exchange. The management changes were announced after trading ended for the day.
