IT major Infosys Ltd., which is in the midst of a search for its first-ever non-founder CEO, announced to the stock exchanges on Wednesday that its company president and board member B.G. Srinivas has resigned, effective June 10.
Mr. Srinivas, who has been with Infosys for 15 years, was seen as one of the front-runners for the top post, and tipped as the most-favoured for the job from within the company. He, along with UB Pravin Rao, was appointed as company president in January this year. The resignation has fuelled speculation that the company may have decided to go with an external candidate.
Exodus impact The exit marks the tenth top executive-level exit at the company in the span of the one year since co-founder N.R. Narayana Murthy returned to the helm of the company. While the company has repeatedly tried to underplay the impact of this exodus, with Mr. Murthy even portraying it as a necessary cost-optimisation measure, fact is that at least three of the 10 who quit were at some point seen as candidates who could rise to the top job at the company. These include Ashok Vemuri, who now heads iGate, Chandra Shekar Kakal, recently appointed COO at L&T Infotech, and V. Balakrishnan, who recently contested in the Lok Sabha election
Analysts believe that the sudden exit indicates that the CEO hunt may be over, or in its last legs. Mr. Srinivas' former colleague and former Infosys CFO Mr. Balakrishnan, who withdrew from this high-profile race when he opted for a political career late last year, said that this development indicated that “Mr. Srinivas had an inkling that his chances are slim”. He said: "Infosys should not delay this CEO hunt further. In any company, where there is a CEO search, people will leave...this is natural. But in order to stem such exits, the company should wind up the process quickly."
No official reasons The company did not give any reasons for Mr. Srinivas’ exit, barring a statement from the board of directors “placing on record a deep sense of appreciation for services rendered by Mr. Srinivas during his tenure as Member of the Board and for his contribution.” The Infosys release quoted Mr. Srinivas thanking the company for the “wonderful opportunity” and describing his tenure as “rewarding.”
“I am proud to have contributed to the best growth story in the industry.” On the exit, Mr. Murthy said that Mr. Srinivas had “played an important role in the company's growth.” “The board and every Infoscion thanks B. G. Srinivas for his wonderful contribution and wish him great success in his future endeavours.”
