The chief executive of Infosys, Vishal Sikka, has resigned
from his post with an unconventional and lengthy letter blaming "personal
attacks".
In the letter Mr Sikka said the "continuous drumbeat of
distractions" contributed to his decision to resign.
It follows public criticism of the company and its board by
its founders.
Infosys is one of India's largest IT services firms. Shares
in the firm plunged 9% following news of Mr Sikka's departure.
Mr Sikka was appointed in June 2014 and tasked with turning
around the struggling business.
The company announced he was resigning as chief executive
and managing director with immediate effect, but would stay on as executive
vice chairman.
Infosys chief operating officer U. B. Pravin Rao will take
over as interim chief executive, the firm said.
'False' allegations
The move follows disagreements between the company and its
founders, who were unhappy with various decisions taken by the board.
The firm's founders, who still own 12.75% of Infosys, had
questioned a pay rise granted to Mr Sikka and the size of severance payouts
given to other employees.
In his resignation letter, Mr Sikka covers a wide range of
topics - from artificial intelligence, to the Charlottesville tragedy, Brexit
and US President Donald Trump - as he explains his decision to step down.
He notes constant "distractions" frustrated his
efforts to grow the company.
"Over the last many months and quarters, we have all been
besieged by false, baseless, malicious and increasingly personal attacks,"
he said.
"This continuous drumbeat of distractions and
negativity over the last several months/quarters, inhibits our ability to make
positive change and stay focused on value creation.
"Allegations that have been repeatedly proven false and
baseless by multiple, independent investigations," he wrote.
Under Mr Sikka's leadership the firm, which exports IT
services, has shifted away from traditional IT services to focus on new products.
Some parties, including the company's founders, have been
critical of the approach.
Analysis: Sameer Hashmi, India business reporter
The bitter acrimony between the board and Infosys founders
had been brewing for some time. But Mr Sikka's decision to quit the company
under these circumstances has left investors and shareholders worried.
In his first comments to analysts following his resignation,
Mr Sikka described the continuous allegations against him by the founders
headed by Mr Narayana Murthy as 'sickening'. The Infosys board has backed Mr
Sikka and squarely blamed Mr Murthy - the main founder of the company - for
Mr
Sikka's resignation.
Infosys has been grappling with challenges the IT industry
has faced in recent years. With the Trump administration cracking down on H1-B
visas, which were primarily issued to Indian IT employees, profits of Indian IT
firms have been under pressure.
The US is a significant market for the Indian IT industry,
contributing more than 60% to overall revenues. There's also the rise of
artificial intelligence, which has led to massive job cuts at Indian IT firms.
Allegations 'harmed morale'
In a statement, Infosys said it was "profoundly
distressed" by the personal attacks on its management team in recent
months.
The company denounced its critics and said the allegations
had "harmed employee morale and contributed to the loss of the company's
valued CEO".
It praised Mr Sikka's efforts in providing a new direction
for the company, increasing revenues and reducing employee attrition.
Mr Sikka will receive an annual salary of $1 in his new role
as executive vice chairman.
