Vishal Sikka resigns as Infosys CEO & MD with immediate effect

Sikka has been appointed as Executive Vice-Chairman while Chief Operating Officer UB Pravin Rao will now take over as the interim MD and CEO of the software major.

Infosys said that the succession plan for appointment of a new Managing Director and Chief Executive Officer has been operationalised by the board and a search for the same has been commenced.

Murthy vs Sikka

Sikka was hand-picked by Infosys co-founder Narayana Murthy in 2014 to lead the company during a time when it was battling a severe slowdown, amid broader challenges in the industry.

Analysts said Sikka's appointment, given his background working for product companies such as SAP, would help Infosys -- a service company -- boost innovation and keep up with advances in technologies.

Also Read: Narayana Murthy hits back at Infosys board: Here's the complete statement

The CEO, the first appointed from outside Infosys, saw the company made progress on several fronts: revenue growth increased, attrition fell and the company made advances on revenue mix, revenue per employees and upped its play on technologies such as automation.

But soon, Sikka came under fire from Murthy himself, who attacked several decisions taken at Infosys besides Sikka's supposed lavish lifestyle.

Sikka maintained a studied silence on Murthy's public attacks, but the final straw appeared to be a letter by the co-founder, leaked today, in which he said Sikka was only 'CTO material, not CEO material'.

"Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks. Allegations that have been repeatedly proven false and baseless by multiple, independent investigations," Sikka wrote in his resignation letter.

Also Read: Is Sikka’s exit a nasty hiccup or the beginning of the end for Infy? The succession will tell

"But despite this, the attacks continue, and worse still, amplified by the very people from whom we all expected the most steadfast support in this great transformation. 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."

The board, which has sided with Sikka, attacked Murthy's campaign for carrying out 'continuous assaults' against the CEO.

Also Read: Sikka’s exit causes ‘Vishal’ hole of almost Rs 1,000 crore in Murthy’s portfolio

"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," read the communication to the exchanges.

Executive director Ravi Venkatesan told the board had no intention of inviting Murthy back at Infosys for a formal role.