Infosys crisis: Board offers to quit to expedite fresh start for Nandan Nilekani at the top

 BT Online        Last Updated: August 24, 2017  | 11:34 IST
Infosys crisis: Board offers to quit to expedite fresh start for Nilekani at the top
Nandan Nilekani

Paving the way for co-founder Nandan Nilekani's likely return, the entire Infosys board on Thursday offered to resign to facilitate a fresh start at the helm of the Bengaluru-headquartered firm, The Economic Times reported.

Nilekani, CEO of the IT behemoth from March 2002 to April 2007, has emerged as the top contender to head the firm after Vishal Sikka resigned as CEO and MD on August 18 blaming 'distractions' and 'disruptions' during his tenure.

UB Pravin Rao was appointed as interim-managing director and chief executive. Sikka was appointed as executive vice-chairman.

A group of 12 major institutional investors in Infosys has asked the IT services company to bring former CEO Nandan Nilekani back on to its board to try to resolve a feud with the company's founders.

The Infosys board has been locked in a public dispute since February with the founders, led by former chair Narayana Murthy, who have accused the directors of governance lapses.

The differences prompted its Chief Executive Vishal Sikka to resign, sparking a sell-off that has wiped over $4.5 billion from Infosys' market capitalization over the last four trading sessions.

The investors, which include HDFC Asset Management, ICICI Prudential Asset Management and Birla SunLife Asset Management, among others, added that Nilekani's return would be welcomed as he enjoys the confidence of clients, shareholders and employees.

The group of institutions, who have signed the letter to the Infosys board, together own roughly 10 per cent of the company's shares, according to Thomson Reuters data.

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