Exit of CFO MD Ranganath 'irreplaceable loss' for Infosys, says Narayana Murthy
Narayana Murthy's comments assume significance given the protracted stand-off in the past between him and the previous Infosys management over issues of corporate governance and severance package doled out to former executives like Rajiv Bansal
New Delhi: Infosys co-founder NR Narayana Murthy today said the exit of the company's CFO MD Ranganath is an "irreplaceable loss" for the IT services firm at a "critical juncture".
Describing him as "one of the best CFOs" in India and a "rare individual", Murthy said in a statement that Ranganath understood all important stakeholders, including clients, delivery teams, employee aspirations, finance, investors, governance, the law, as also "the role of an ethical business in building a better society".
"He is everything the idea of Infosys has always stood for. His departure is an irreplaceable loss for Infosys at this critical juncture," said Murthy.
The comments assume significance given the protracted stand-off in the past between him and the previous Infosys management over issues of corporate governance and severance package doled out to former executives like Rajiv Bansal.
Infosys, once the bellwether of India’s showpiece $154 billion IT industry, last year witnessed a public row between founding executives and then-CEO Vishal Sikka over alleged corporate governance lapses. Sikka eventually exited the company in August 2017.
Salil Parekh, a long-serving Capgemini executive, took over as Infosys CEO in January this year, at a time the company’s board is chaired by another key co-founder, Nandan Nilekani.
Stating that he had worked with 'Ranga' for over 15 years, Murthy said he has been "instrumental" in raising investor confidence in the company during the last five years by managing costs and margins.
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"His ability to take tough decisions in challenging situations, his solid financial expertise, strong value system, unfailing courtesy and flawless execution always distinguished him as an exemplary leader and a key asset for the company," Murthy added.
Earlier today, Infosys said Ranganath has resigned after an 18-year stint at India's second largest IT services firm.
He took over as CFO in 2015 after the exit of Rajiv Bansal.
Ranganath will continue in his current position as CFO till 16 November, 2018, Infosys said in a statement.
Ranganatha tendered his resignation just seven months after India’s second-biggest software services exporter appointed a new Chief Executive Officer.
“After a successful career spanning 18 years in Infosys including as CFO for the last three crucial years, I now plan to pursue professional opportunities in new areas,” the Infosys filing quoted Ranganath as saying.
--With agency inputs
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Sikka may brief participating fund managers on issues that have prompted some of the company's co-founders, including N R Narayana Murthy, to publicly air their discontent against the board.
Murthy was responding to reports that he had backed down from the confrontation with the Board over corporate governance issues.
Sawhney replaces Gopi Krishnan Radhakrishnan — the acting general counsel of Infosys — who will be leaving the company later this month to pursue other opportunities.