Promoters have no say after leaving company: Reddy on Sikka exit

Hyderabad, August 18

Former Nasscom chairman BVR Mohan Reddy on Friday said it was very “sad” to see a “good CEO” like Vishal Sikka stepping down as the CEO of Infosys, and added that promoters have no say after leaving a company.

The company said Sikka, the first non-founder CEO of Infosys, has abruptly resigned due to the “continuous assault” and “campaign” by founder and ex-chairman NR Narayana Murthy.

Reacting to this, Murthy said he is not seeking “any money, position for children, or power”, while expressing anguish over the board’s allegations that his “continuous assault” led to Sikka’s exit.

Reddy said: “It is very sad to see a good CEO leaving a great company for avoidable reasons. The promoters have no locus standi (right to interfere or have say in the matter) once they leave the company.”

If something similar had happened in a Western country, shareholders would file class action suits against the company, said Reddy, founder and Executive Chairman of Cyient.

“Even assuming that the 12.5 per cent create trouble, who suffers is the other 87.5 per cent,” he said.

As of June 2017, the founders of Infosys are holding 12.75 per cent shares in the company.

Sikka resigned amid heightened acrimony between the board and the high-profile founders led by Murthy. PTI