Infosys board plans measures to calm rattled investors
Infosys board members may meet institutional investors as CEO Vishal Sikka's shock resignation has led to huge erosion of market cap
Last week’s shock resignation by Vishal Sikka, the CEO of Infosys Ltd, India’s second largest software services exporter, has spooked the country’s bourses and the top management is reportedly planning measures to soothe investors. Sikka had resigned over ‘malicious personal attacks’, mainly by co-founder N.R. Narayana Murthy.
Infosys board members are likely to hit the road within the next ten days to meet institutional investors. Two teams have been put in place to meet investors abroad, one to the US and the other to Singapore and Hong Kong. There will be also be meetings with Indian investors, reports Economic Times.
As Murthy is also at loggerheads with Infosys board, accusing it of corporate governance failure, the latter hopes this pro-active move would help pre-empt any attack by the co-founder. Infosys has seen its market cap erode Rs 339 billion (US$ 5.29 billion) in just the last two trading sessions.
‘Infosys board should resign’
Meanwhile, Murthy-loyalist and former chief financial officer of the company V Balakrishnan has sought resignation of four members of the company board, including Chairman R Seshasayee and Co-chairman Ravi Venkatesan, over alleged governance failure.
Balakrishnan wants the board to be reshuffled before a new chief executive is named to replace Sikka, reports Business Standard. He told the daily, “The chairman (Seshasayee) should leave for the governance failure at Infosys. The co-chairman (Venkatesan) should leave, as one does not discuss the CEO’s performance publicly like this. The audit committee chairman (Roopa Kudva) should resign because she failed to protect the integrity and value system of the company. The nomination committee chairman (Jeffrey S Lehman) should also step down.”