Key Highlights: 

  • Vishal Sikka resigns on August 18, 2017 from Infosys MD and CEO post
  • Nandan Nilekani served as Infosys CEO between 2002 - 2007
  • Infosys share price have emerged as top gainer on Nilekani's comeback news

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Battle between Infosys board members and co-founders have taken another interesting turn after when Dr Vishal Sikka resigned from his Managing Director and CEO post on April 18, 2017.

Sikka's reason for exit was on the back of continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the company's transformation.

Infosys board since February 2017, has been locked in dispute with founders led by the former chairman NR Narayana Murthy – who kept accusing the directors of governance lapses.

Hit hard by Sikka's resignation, Infosys' other directors did not shy away in accusing Murthy. Infosys said, ''The Board believes it must set the record straight on the false and misleading charges made by Murthy because his actions and demands are damaging the Company and misrepresent its commitment to good corporate governance."

Well looks like tables have turned and Murthy will get his way in Infosys. Many reports are saying that the former CEO Nandan Nilekani may return back to the Infosys board to try to resolve a feud with the company`s founders.

This is expected to cause some turmoil in Infosys as Nilekani's comeback would mean that the board will have to be reconstituted.

Pankaj Kapoor, analyst at JM Financial stated that Infosys is likely to move quickly on the CEO hiring to minimize operation disruption. However, if Murthy hardens his stance and substantiates his allegations, it is possible that the board could come under pressure to resign.

Kapoor said, “In that event, a new board could get constituted under Murthy’s direction and that in turn, would hire the new CEO.”

However, keeping the board-founder drama aside, Nilekani can actually be the man who Infosys needs right now.

Investors want former CEO Nandan Nilekani to return to Infosys board

  • Vishal Sikka's three year stint at Infosys comes to an end; A snapshot of company's performance in this time
  • Vishal Sikka resigns from Infosys: Full text of his letter to the Board
  • Infosys hits back at Narayana Murthy; says he is damaging the company