Infosys CEO May Be An Outsider Too!

by CXOtoday News Desk    Jan 13, 2014

infosys

The recent changes in the management structure in Infosys generated as much curiosity in the industry, as the company’s lookout for a new CEO next year, after S.D. Shibulal, the last of the founders to head the company steps down. Recently Chairman NR Narayana Murthy has sent out a clear message that the company may even look out for external candidates after Shibulal resigns in March 2015.

One week ago, Infosys announced the appointments of B.G Srinivas and Pravin Rao, both senior vice presidents, as Presidents of the company. In effect, Srinivas was put in charge of market-facing functions and Rao made head of delivery. However, this does not confirm their positions as the future CEOs. Infosys says it isn’t ruling out external candidates in its hunt for a new CEO despite having recently promoted two of its executives to president.

In a note sent out to analysts, Murthy said that at the end of the day our priority is to make this a high-performance organisation. Right after the appointment of the two veterans, Murthy said that an external candidate may well be chosen as CEO if the two Infosys veterans don’t measure up to expectations.

“If for any reason the nominations committee decides that there will be a CEO from the outside, then this is the structure that is least perturbing to the stability of the organization,” he mentioned.

Murthy, who returned from retirement in June, had to preside over a spate of exits of senior executives since then. Two of them - Board directors V Balakrishnan and Ashok Vemuri—were considered top contenders to replace Shibulal, leaving room for more speculations.

Meanwhile, Infosys abolished the ‘executive council’, a layer of senior management functionaries who were earning an “allowance” of $150,000 (Rs 93 lakh) every year. “As an organisation that is focusing on bringing efficiency in every dimension of our operation we wanted to set an example at the highest level, and that’s when we had to take the tough decision of disbanding the executive council,” Murthy told media representatives.

 

He stated that even if the company appoints external candidates as its Chief Executive, it should not disturb the organizational structure and will in fact bring more stability to the organization.