A lot has happened at Infosys in the last couple of weeks. Vishal Sikka has stepped down, the chairman of the board has resigned, Nandan Nilekani has come back in the capacity of non-executive chairman and fund managers are happy. But the big challenge for Infosys comes as it looks for its next CEO. While Egon Zhender has already been hired for the task, the real challenge will be something all together different. Let us understand why.…
Not another outsider, please!
With the experience that the founding members and the markets have had with Vishal Sikka, the company would have to think twice before bringing another outside professional into the role. For a company that is too DNA-centric, it will be very difficult for a rank outsider to come and adjust himself. It is also very likely that the differences between the Board and the promoter group will continue to simmer in that case. Ideally it will have to be someone from within.What are the options? Firstly, the company could ratify Praveen Rao as the permanent CEO. That is a distinct possibility. Secondly, the promoter group could infuse some of their own next gen into the company top job. But that would be very much in congruent with the broad principles that the promoters have espoused. Lastly, Infy could bring back some of its past veteran employees who did not get a shot at the corner room in the past.
What role will Nandan play?
A key point to consider before the question of the new CEO will be the role that Nandan will play in the coming months. The fact that Nandan has been brought in as a non-executive chairman by relieving Sikka immediately means that Nandan has a larger and longer role. It is clear that Nandan will continue to represent the founding promoter son the board in a much bigger way. Also non-executive may be a misnomer as one can expect Nandan to virtually drive the path for Infosys from here on. Other board members are most likely to gravitate towards the Nandan nucleus.
Status quo may be the choice…
It needs to be remembered that Murthy himself was strongly in favor of founding promoters running the show as long as possible. That was the case till 2014 when Fibula made way for Sikka. That clearly means that high profile ex-employees of Infosys who are now cooling their heels may not really be contenders either for the top job or even fora board position. That leaves us with the status quo. It is very likely that Nandan continues to drive the Infosys business as the non-executive chairman. Pravin Rao may be ratified as the full-time CEO of the company, but the real reins will be in the hands of the founding promoters. As Nandan drives the show, this arrangement could be good for all the stakeholders!
A key point to consider before the question of the new CEO will be the role that Nandan will play in the coming months. The fact that Nandan has been brought in as a non-executive chairman by relieving Sikka immediately means that Nandan has a larger and longer role. It is clear that Nandan will continue to represent the founding promoter son the board in a much bigger way. Also non-executive may be a misnomer as one can expect Nandan to virtually drive the path for Infosys from here on. Other board members are most likely to gravitate towards the Nandan nucleus.
Status quo may be the choice…
It needs to be remembered that Murthy himself was strongly in favor of founding promoters running the show as long as possible. That was the case till 2014 when Fibula made way for Sikka. That clearly means that high profile ex-employees of Infosys who are now cooling their heels may not really be contenders either for the top job or even fora board position. That leaves us with the status quo. It is very likely that Nandan continues to drive the Infosys business as the non-executive chairman. Pravin Rao may be ratified as the full-time CEO of the company, but the real reins will be in the hands of the founding promoters. As Nandan drives the show, this arrangement could be good for all the stakeholders!
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