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How continuous 'personal assaults' led to Vishal Sikka's exit [ad_1]



NEW DELHI: Stress is perhaps a given when you are the CEO of a multi-billion dollar technology firm. But "continued assaults" of "baseless" allegations are certainly not what Vishal Sikka signed up for when he joined Infosys three years ago.

7 things NR Narayana Murthy and other co-founders 'attacked' Vishal Sikka and Infosys for

7 things NR Narayana Murthy and other co-founders 'attacked' Vishal Sikka and Infosys for

After months of tussle with the co-founders, Infosys CEO Vishal Sikka has resigned. During his three-year tenure as CEO, Sikka faced several salvos from NR Narayana Murthy and other co-founders. The most recent being in a letter, dated August 9, where Murthy is said to have raised questions over Sikka's leadership. Earlier too, Murthy has publicly criticised Infosys over lapses in corporate governance, allegations that the company firmly denied repeatedly. Here are some of the things that NR Narayana Murthy and other co-founders 'attacked' Vishal Sikka and Infosys for over the last several months.

Using chartered planes to meet clients

Murthy is said to have criticised him for chartering private planes to meet clients.

Questioned pay hike given to Vishal Sikka

The founders questioned the pay hike given to Sikka. In February last year, the board decided to give Sikka a 55% pay hike to $11 million. The sharp increase in his salary is said to have been a big issue of disagreement.

Only 23.57% of promoter voted in Sikka's favour

Only 23.57% of promoter votes are reported to have been cast in favour of reappointing Sikka as managing director and CEO in April 2016.

Severance payout given to former CFO Rajiv Bansal

The co-founders also slammed the size of the severance payout given to former CFO Rajiv Bansal. Infosys board had approved Rs 17.38 crore severance payment for Bansal. In its defence the company said that the employment contracts of key members of the executive team include a severance clause, and such clauses are guided by the complexity of the role as well as country-specific regulations.

Vishal Sikka "not CEO material"

According to a report in business daily Mint, Narayana Murthy in an email quoted some independent directors as saying that Vishal Sikka was more chief technology officer (CTO) material than chief executive officer (CEO) material. "All that I hear from at least three independent directors, including Mr Ravi Venkatesan (co-chairman), are complaints about Dr Sikka. They have told me umpteen times that Dr Sikka is not a CEO material but CTO material. This is the view of at least three members of the board, and not my view since I have not seen him operate from the vantage point of an Infosys board member," Murthy reportedly said in the email.

Questioned the company's Panaya acquisition and some other decisions

The company conducted an independent valuation into the $200 million acquisition of Panaya after claims of inconsistencies in the deal. The investigation aimed to find out if any company executive benefitted from the acquisition.




Sikka was welcomed into the troubled-Infosys with much fanfare, becoming the company's first non-founder CEO in 2014. He was taking over from S D Shibulal at a time when rivals were racing ahead and the company was losing manpower at a steady pace, along with its precious 'bellwether' tag.

His entry was also keenly followed as he took over the reins of the over three decade-old company, ending an era of promoter-led leadership.

And the ride promised to be a bumpy one. However, controversies just kept getting added to the equation.

Sikka had the blessings of the co-founders, including NR Narayana Murthy, when he had stepped into Infosys.

Three years hence, Murthy turned out to be his nemesis and the very reason for Sikka's sudden exit from the USD 10- billion IT giant.




At the time of Sikka's appointment, Murthy waxed eloquent about his "illustrious track record" and value system that made Sikka an "ideal choice" for Infosys.

Sikka had the task cut out right in the beginning. He had the responsibility of reinvigorating the company that was facing mass exodus of employees and losing out to rivals.

The former SAP board member is credited with ushering in automation and artificial intelligence, technologies that have now become buzzwords in the IT services industry.

He took a number of steps, including gifting iPhones to woo top performers, and pushed up Infosys' financial metrics in signs of a turnaround.

The ambitious Sikka also threw a challenge to Infoscions, urging them to help scale up Infosys revenues to USD 20 billion by year 2020.

He was also clear that Infosys will not acquire companies of "yesterday". The Bengaluru-based firm has made a slew of acquisitions and investments in the last three years with the prominent ones being Skava, Noah Consulting and Panaya.

However, the USD 200-million Panaya deal stirred a hornet's nest with anonymous whistleblower complaints being sent to market regulators that alleged that senior executives may have benefited from the transaction.

For Infosys, it was a double-whammy. Like its peers, the company battled external challenges like visa clampdown in the US and Brexit.

A different kind of crisis was unfolding internally as founders regularly took potshots at the senior leadership for what they dubbed as corporate governance lapses.

Infosys continued to be in news for the most part of the year as comments and counter-comments kept investors, employees and clients on their toes.


Vishal Sikka quits as Infosys CEO: Who said what

Infosys's first non-co-founder CEO and MD Vishal Sikka has resigned. The resignation brought out in open the on-going war between the company's board and its co-founders since past many months.





Matters came to a head in the last few weeks where the "continued assaults" of "baseless" allegations reached a crescendo, growing more personal. This ultimately culminated in Sikka's sudden resignation, a day before the crucial meeting where the board will consider a buyback offer of as much as Rs 13,000 crore.



Over the next few months as Infosys searches for its next CEO, Sikka will draw a token salary of USD 1, a far cry from the earlier USD 11 million package.



While Sikka still does not have a major assignment lined up, he said he will probably take some time off and go surfing.



Spending more time with his loved ones is also on the list for the 50-year Stanford University passout.



Sikka probably speaks for all high-profile executives and the stressful lives when he says, "I've been away from home far too often and far too long."



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