Infosys said that board of directors of the company at a meeting held today, August 18, 2017, accepted the resignation of Dr Vishal Sikka as the Managing Director and Chief Executive Officer of the company with immediate effect.
In his notice of resignation to the Board, Dr. 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 resignation intimation receivied by the Board from Dr. Sikka is attached as Annexure A.
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.
Dr. Sikka has been appointed 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.
Dr. Sikka will continue to focus on strategic initiatives, key customer relationships and technology development. He will report to the company's Board.
Dr. Sikka will receive an annual salary of USD 1 during his tenure as Executive Vice Chairman. Any Company equity awards held by Dr. Sikka that remain outstanding and unvested shall, during his term as Executive Vice Chairman, remain outstanding and shall continue to vest (and, in the case of stock options, become exercisable) in accordance with their terms.
Shares of the company declined Rs 77.15, or 7.56%, to trade at Rs 944.00. The total volume of shares traded was 2,329,469 at the BSE (12.01 p.m., Friday).
