Market bellwether Infosys Technologies, admired for its leadership standards, announced its biggest transition in three decades. NR Narayana Murthy, the man who built a global technology services giant out of India, will retire. The board appointed KV Kamath as new chairman of Infosys and SD Shibulal as new CEO.
Current CEO, S Gopalakrishnan was appointed as executive co-chairman and Narayana Murthy was appointed as Chairman Emeritus of Infosys.
Infosys Technologies will now be renamed Infosys Limited. All new appointments would be effective from August 21, 2011.
Murthy leaves behind a painstakingly-crafted legacy and values which are hard to overlook. Infosys had a practice of founder members becoming chairman.
The industry and markets have been keenly awaiting the succession plans at Infosys. More so, after the resignation of T V Mohandas Pai as Director and Head of Human Resources after putting in 17 years in the company. Pai was considered by many as the CEO material.
Murthy had stepped down as CEO in 2002, handing over office to co-founder Nandan Nilekani. Nilekani left the company in 2007 to join the Unique Identification Authority of India. Current CEO Gopalakrishnan took over the reins from Nilekani.
Infosys had formed a nominations committee, comprising Professor Jeffery S Lehman , Deepak M Satwalekar (former MD and CEO of HDFC Standard Life Insurance) and KV Kamath (non-executive Chairman of the Board of Directors of ICICI Bank).
The committee is responsible for succession planning for the roles of chairman, CEO, COO and CFO of the company.
After Murthy's exit, only two of the co-founders -- CEO S Gopalakrishnan and COO S D Shibulal -- will remain on the company board.
Co-founder K Dinesh will also retire from the company, after Infosys' Annual General Meeting on June 11, 2011.
Among the co-founders, Ashok Arora was the first to leave in the late 1980s, selling his stake. Afterwards, N S Raghavan left the company.
Infosys was started in 1981 by seven entrepreneurs including Murthy, Nilekani, Gopalakrishnan, Shibulal and K Dinesh. The founders started the company with an initial investment of Rs 10,000. Today, the IT and consulting company has revenues of $6.04 billion.
Headquartered in Bangalore, Infosys went public in 1993. It has a global footprint with 64 offices and 63 development centres across the US, the UK, India, China, Australia, Japan and Middle East among others.
While promoters have a 16.04 per cent stake in the company, other shareholders include LIC (4.28 per cent), Oppenheimer Developing Markets Fund (2.19 per cent) and Abu Dhabi Investment Authority (1.93 per cent).
Infosys and its subsidiaries had 1,30,820 employees as on March 31, 2011.
Source: www.economictimes.com
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