Infosys chief executive Vishal Sikka has resigned because of a “long-running” row with founders over the tech firm’s strategy.
Sikka blamed a “continuous drumbeat of distractions” for resigning, and its shares fell more than 13% to a three-year low of US$14.71, wiping around US$4.85billion off the Indian IT firm’s market value.
The global leader in technology services and consulting board supported Sikka by blaming former-chairman, Narayana Murthy, for his resignation because of “continuous assault”.
Murthy said he was “extremely anguished by the allegations, tone and tenor of the statements” and that his main concern was the deteriorating standard of corporate governance.
The chairman is also said to have email quoted Infosys independent directors saying Sikka was “not CEO material but CTO material”.
Sikka said in a blog post: “I cannot carry out my job as CEO and continue to create value, while also constantly defending against unrelenting, baseless/malicious and increasingly personal attacks.
“The distractions, the very public noise around us, have created an untenable atmosphere.”
Apurva Prasad, analyst at HDFC Securities, added: “There is some level of uncertainty as we wait till the new CEO and managing director comes in, and it does put the company in some form of uncertainty in terms of strategy.”
Written by Leah Alger