Infosys Ltd ADR (NYSE:INFY) stock was down today on the surprise resignation of CEO Dr. Vishal Sikka.
Vishal Sikka has chosen to step down as the CEO of Infosys Ltd ADR due to recent internal drama. This includes letters from the company’s founder, N.R. Narayana Murthy. These letters have criticized the company and specifically called out its Board of Executives for alleged failing corporate governance.
Infosys Ltd ADR says that Murthy’s letters against the company are the reason for Sikka stepping down as CEO. INFY stock has performed well under the CEO, who took over the company in 2015. This includes increasing revenue and liquid assets during his run.
“Over the last many months and quarters, we have all been besieged by by false, baseless, malicious and increasingly personal attacks. Allegations that have been repeatedly proven false and baseless by multiple, independent investigations,” Sikka said in his resignation letter. “This continuous drumbeat of distractions and negativity over the last several months/quarters, inhibits our ability to make positive change and stay focused on value creation.”
Vishal Sikka will be staying on with Infosys Ltd ADR until it can find a permanent replacement for him. However, he will be serving in the role of Executive Vice Chairman. The company expects to find a replacement no later than March 2018.
With Sikka acting as Executive Vice Chairman, the company has chosen U. B. Pravin Rao to act as its interim CEO. Rao will report directly to Sikka. The Board of Executives has also mandated that its Chairman and Nomination and Remuneration Committee work quickly to find a new CEO.
INFY stock was down 7% as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.