Nandan Nilekani has returned to rescue Infosys, a company he and six others founded in 1981.
On a day when the Supreme Court ruled that privacy is a fundamental right, Nilekani, the architect of the controversial unique identity number, Aadhaar, took over as the non-executive chairman of Infosys.
Following this development, Vishal Sikka, R Seshasayee, Jeff Lehman and John Etchemendy stepped down from the Board.
Ravi Venkatesan, the co-chairman who has also stepped down from his position, will continue to be on the Board for some more time, according to a company statement. UB Pravin Rao will continue to be interim CEO and Managing Director, the company said.
Soothing investors Soon after taking over, Nilekani sent out a clear message to worried investors and shareholders stating that the Board will actively consider a broad-based shareholder consultation process as a critical part of its overall engagement initiatives with all the stakeholders of Infosys.
Outgoing Chairman Seshasayee said Nilekani’s appointment will allow Infosys to focus on the strategic changes it needs to make in order to capitalise on the attractive opportunities in the years ahead.
Company executives added that Sikka will receive 90 days’ base pay (in lieu of notice) of $2,46,575, a variable pay of $2,05,572 and company-paid employee benefits for three months, adding that all equity awards outstanding as on separation date to the extent such awards are unvested will terminate on the date of separation.
Further, all equity awards that vested during his employment with Infosys will remain as vested as per the terms of the equity plan and award agreement.
These developments come in the backdrop of the entire Infosys Board meeting Prime Minister Narendra Modi earlier in the day to brief him about the current situation at the IT major even as efforts are on to re-constitute the Board to clear the path for Nilekani to take back the reins of the company.
Further, Nilekani also met both Prime Minister Modi and Finance Minister Arun Jaitley, according to government sources. The issue on hand is to bring about an amicable settlement of the issues faced by the company as a result of Sikka’s resignation. The recent developments at Infosys had spooked the markets, and earlier this week, India’s second-largest software exporter lost market capitalisation of around ₹34,000 crore, which has raised the hackles of investors, both domestic and foreign.
Earlier this week, LIC, which holds around 7 per cent in Infosys, met Jaitley to brief him on the situation.
Nilekani's appointment came after market hours. Infosys shares closed positive for the second consecutive day. At the end of trading day, shares closed at ₹912, or 2 per cent up as compared to the previous day’s close.