24 Aug 2017
Infosys appoints Nandan Nilekani as Chairman of the Board
According to reports, Nandan Nilekani has been appointed as the non-executive, non-independent director and the Chairman of the Board of Director with immediate effect.
Vishal Sikka who earlier resigned from the CEO position has now resigned from its new post of executive Vice Chairman of Infosys.
Chairman R Seshasayee and co-chairman Ravi Venkatesan have also resigned from the board.
Nilekani's history at Infosys
Nilekani, along with NR Narayana Murthy and five others, co-founded Infosys in 1981, when he was 26.
After serving in various posts including MD and president, Nilekani became the CEO in March 2002 and served till 2007.
In 2009, he joined the UIDAI as chairman. He left in 2014.
Presently, he is the third largest founder-shareholder in Infosys with a 2.3% stake.
The current crisis at India's premier IT company
Meanwhile, Infosys is undergoing a major crisis. A week ago, Vishal Sikka resigned after months of bitter showdowns with the founders, continuous high profile exits and dismal financial conditions.
In the immediate aftermath, shares fell as much as 7.05%.
Elsewhere, three American law firms have filed class action suits against it over alleged securities fraud, misleading information and unlawful practices.
Do you know?
Many names did the rounds amid speculations about next CEO
After Sikka's resignation, the industry was abuzz with speculations about who would take charge next. Some names floated were Infosys Interim CEO UB Pravin Rao, Co-Chairman Ravi Venkatesan, President and Deputy COO Ravi Kumar, CFO Ranganath Mavinakere, and BFSI Global Head Mohit Joshi.
But Nilekani's return seemed imminent
By and large, Nilekani has received wide support from the founders, the board, shareholders as well as employees.
A group of 12 major investors, which owns 10% of Infosys' shares, asked the company to bring in Nilekani.
Stocks rose 3% and then 2% yesterday and today on his return rumors.
Why this clamor for the company's co-founder?
Nilekani will be able to balance the board's demands with the pressures of the founders, a tough job that led to Sikka's resignation.
Since Nilekani is almost the only person Murthy listens to, his arrival might soften the latter.
His execution abilities and the capacity to manage diverse interests is evident: Nilekani has worked with both the Congress and the BJP on different projects.