iGate sacks CEO Phaneesh Murthy on sexual harassment probe

Information Technology firm iGate has sacked its president and chief executive officer Phaneesh Murthy following a sexual harassment probe, the company said in a statement.

Gerhard Watzinger has replaced Murthy as an interim chief executive with immediate effect, the company said.

"The Boards 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," iGATE said.

"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," it said.

This is the second time that Murthy has been involved in sexual harassment case. He faced a sexual harassment charge from his personal secretary which was settled by Infosys in May 2003.

The statement further said, 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.

The Committee will select an experienced industry veteran to take over as the permanent President and CEO and drive long-term growth for iGATE, while upholding the highest ethical standards, personally and professionally, it said.

Watzinger has taken himself out of consideration for the role of permanent President and CEO, but he will serve as Interim President and CEO until the selection process is complete, it said, adding, the company does not expect to make any additional structural or executive leadership changes in the near future.

With PTI inputs