Salil Parekh Appointed Infosys CEO and MD, Gets Warm Welcome from Nandan Nilekani
The announcement of Parekh’s appointment ends Infosys’s three-month hunt for a new CEO after Vishal Sikka resigned from the post after a long public battle with the tech giant’s founders.
Infosys, which had roped in executive search firm Egon Zehnder to assist in search for the replacement, had set itself a target of March 2018 to fill the top vacancy.
Salil Parekh appointed new CEO & MD of @Infosys . @NandanNilekani says Parekh has a strong track record of executing business turnarounds, managing very successful acquisitions. Board believes he is the right person to lead Infosys at this transformative time in our industry.— Shereen Bhan (@ShereenBhan) December 2, 2017
U B Pravin Rao will step down as interim CEO and Managing Director of @Infosys effective January 2, 2018. Rao will continue as Chief Operating Officer and a whole-time Director @CNBCTV18News @CNBCTV18Live— Shereen Bhan (@ShereenBhan) December 2, 2017
Commenting on the appointment of Parekh, Nandan Nilekani, chairman of the Infosys board, said he is delighted to have Salil join as the CEO and MD of Infosys.
“He has nearly three decades of global experience in the IT services industry. He has a strong track record of executing business turnarounds and managing very successful acquisitions. The Board believes that he is the right person to lead Infosys at this transformative time in our industry. The Board is also grateful to Pravin for his leadership during this period of transition,” Nilekani said.
Parekh joins during one of the most turbulent patches ever for the $150 billion Indian IT services sector. The industry is facing squeezed margins, Brexit question marks over European businesses, and uncertainty in the United States, thanks to visa policy changes.
Infosys' hunt for a new CEO had been on since co-founder Nandan Nilekani returned in August at the helm of the company after former chief Vishal Sikka quit, making investors' confidence dwindle.
Sikka had cited continuing distractions over founder Narayan Murthy's allegations of corporate governance failures which led to a public spat between the Infosys board led by R Seshasayee and the founders following which Seshasayee and two independent directors also quit.
At the centre of the controversy was the $200-million acquisition of Israeli technology firm Panaya and the subsequent severance pay to former chief financial officer Rajiv Bansal. An independent probe had cleared both Sikka and the Infosys board of any wrongdoing.