The iGate CEO was sacked following an investigation into a relationship he had with a subordinate employee and a sexual harassment claim. Gerhard Watzinger, who earlier worked with iGate between 1998-2003, will replace him on an interim basis.
Software services exporter, iGate Corp on Tuesday said its President and CEO Phaneesh Murthy has been sacked following a probe in relation to a relationship with a subordinate employee and sexual harassment claim.
The Fremont, California-based company has appointed Gerhard Watzinger as as Murthy's replacement on an interim basis.
"The Board's decision was made as a result of an investigation by outside legal counsel, engaged by the Board, of the facts and circumstances surrounding a relationship Murthy had with a subordinate employee and a claim of sexual harassment. The investigation, which is ongoing, has reached the finding that Murthy's failure to report this relationship violated iGate's policy, as well as Murthy's employment contract. The investigation has not uncovered any violation of iGATE's harassment policy," it said in a statement.
Sunil Wadhwani said the board had "deliberated extensively" on the matter before taking the decision. He, however, recognised the "significant contributions" Murthy provided over the last ten years in making iGate a leader in the IT industry.
However, he had to go due to this violation, he added.
52-year-old Watzinger has worked as an executive at iGATE from 1998 to 2003 in a number of roles, including CEO of iGate Solutions business (formerly Mascot Systems).
Watzinger was last working at INTEL / McAfee, where he was EVP and Chief Strategy Officer.
Ashok Trivedi, the other co-founder and co-chairman of iGate clarified that Murthy's departure was not related in any way to the company's operational or financial performance, both of which remain strong.
Wadhwani and Trivedi will work closely with Watzinger to ensure a seamless transition.
A search committee within the Board of Directors has been created, which will oversee the process for the identification and selection of a new president and CEO.
Watzinger doesn't want to be the permanent President and CEO, and he will only serve until the selection process is complete, iGate added.