Infosys expresses gratitude to Vishal Sikka for his leadership

At its board meeting held today, the Board of Directors of Infosys Limited accepted Vishal Sikka's resignation as the Managing Director and CEO, effective immediately.

In a statement, the Infosys said that in his notice of resignation to the Board, Sikka reiterated his belief in the great potential of Infosys, but cited, among his reasons for leaving, a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the Company's transformation.

"The Board understands and acknowledges Dr. Sikka's reasons for resignation, and regrets his decision. In particular, the Board is profoundly distressed by the unfounded personal attacks on the members of our management team that were made in the anonymous letters and have surfaced in recent months. As the Board has previously stated, a series of careful investigations found no merit to the unsubstantiated and anonymous allegations that had been asserted. 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," the statement added.

The Board expressed its gratitude to Sikka for his outstanding leadership in the company, and for his contributions during a period of rapid evolution in this industry.

"The Board also appreciates Dr. Sikka's commitment to facilitate a smooth transition to new leadership fully equipped to lead Infosys forward in this new era in our industry and to ensure continuity in our service to our valued customers," the statement read.

The statement added that Sikka has been appointed the Executive Vice Chairman effective today, and will hold office until the new permanent Chief Executive Officer and Managing Director takes charge, which should be no later than March 31, 2018.

"Mr. U.B. Pravin Rao has been appointed Interim Chief Executive Officer and Managing Director reporting to Dr. Sikka under the overall supervision and control of the Company's Board," the statement further read.

The Infosys said that under Sikka's leadership, the company launched breakthrough new programs to drive innovation, education and entrepreneurship on a large scale.

"When Dr. Sikka took over, the company was lagging behind industry growth. During Dr. Sikka's tenure as CEO, Infosys revenues have grown from $2.13B in Q1FY15 to $2.65B this past Q1, with strong margin performance and cash generation, throughout his tenure. Dr. Sikka's approach to profitable growth delivered increase in liquid assets (including cash and cash equivalents) from $4.9B in June 2014 to $6.1B in June 2017, while paying dividends of over INR 19,000 Cr. (including dividend distribution tax) over these three years," the statement added.

Chairman of the Board R. Seshasayee said that Sikka's vision for the future of the industry and the Company will remain a strong reference point.

"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.

The Board has mandated the chairman and the Nomination and Remuneration Committee to expeditiously identify and select a permanent CEO and Managing Director.

The company will be hosting a press conference at 2:00 p.m.