Infosys chairman Nilekani seeks to calm tumult

Bloomberg

Infosys Ltd. Chairman Nandan Nilekani moved to reassure investors and employees after a dramatic coup by the firm’s founders this week in which they ousted four directors and took back control of the troubled Indian IT company.
“I want to put this company on the right stable path,” Nilekani, 62, said. “I plan to be here as long as necessary and work as hard as necessary.”
The founders, led by N R Narayana Murthy, made their move to seize control after clashing with the board in recent months over the company’s performance, corporate governance and the compensation of former Chief Executive Officer Vishal Sikka. The ex-CEO stepped aside at an unusual press conference recently in which he fired back at the founders for making his task impossible. The board at the time also openly criticised Murthy for interfering with management.
Nilekani explained in the recently held press conference in India that the board had held a meeting to discuss the changes after the founders had solicited support from investors. The chairman said he was focused on several key tasks—finding a new CEO, reconstituting the board and stabilising the company’s operations. He wants to leave as soon as those goals are fulfilled, he said. Infosys has a broad pool of candidates to take on the CEO job and aims to make a final decision in the coming weeks.
“I will focus my attention on the future of the business and customer needs, and show demonstrable progress,” Nilekani said. “If you are able to deliver, everything else pales into insignificance.”
Infosys shares, which tumbled after Sikka’s resignation, showed signs of stabilisation.
“Nandan can weave much needed magic and he is abreast with
technology shifts needed for Infosys to go into the digital world,” said Chakri Lokapriya, Mumbai-based managing director at TCG Asset Management.
Earlier this year, the founders wrote to the board asking why Sikka’s compensation had been increased and also questioned severance packages offered to two high-level executives who had left the company.
While the billionaire founders and their cohort hold only about 13 percent of the shares in Infosys, they have disproportionate influence because of their high-profile status.
It now falls upon Nilekani to steer Infosys through the challenges ahead. The company confronts seismic changes in the industry it helped pioneer.