After founders sell Infosys stake, CEO Sikka says it's in keeping with company's values
Sikka, the first outsider CEO of Infosys, noted that thefour co-founders continue to be among the largest retailshareholders in the company
New Delhi: As four founder families sold part of their Infosys holdings today, CEO Vishal Sikka said monetisation of shares for philanthropic and entrepreneurship purposes was in line with the company's values.
"As I have always said, the founders have left anindelible legacy and culture in this iconic company and I respect and trust their decision of contributing towardsphilanthropic activities and entrepreneurship and otherinitiatives...So, in that sense again this action by them isaligned with the company's values," Sikka said in a statement.
"In fact, contributing to the greater good is somethingclose to the company's heart, I am looking forward to furtherstrengthening and reinforcing this area," he added.
Sikka, the first outsider CEO of Infosys, noted that thefour co-founders continue to be among the largest retailshareholders in the company and they have reiterated theircommitment to the future of the company and reinforced theirbelief in and support of its leadership.
Today, families of four Infosys co-founders, includingNarayana Murthy and Nandan Nilekani, sold over USD 1 billion(Rs 6,484 crore) worth shares -- within months of all originalpromoters exiting the management and Sikka becoming the firstoutsider CEO.
While these four co-founders, which also include formerCEO S D Shibulal and K Dinesh, have monetised only part oftheir holdings -- for entrepreneurship and philanthropicactivities -- their action led to a sharp plunge of about 5per cent in the IT heavyweight's share price eroding almostUSD two billion from the company's market capitalisation.
A total of 3.26 crore shares, accounting for over 5.5per cent stake in the company, were sold through multipledeals by Murthy, Nilekani, Dinesh and some of their familymembers, as well as wife of Shibulal.
Infosys, which currently commands a market value of aboutRs 2.25 lakh crore, was founded by seven engineers, includingthese four, by pooling together just USD 250 in 1981, whileall the promoters together held 15.92 per cent stake at theend of last quarter.
The chairman of the nomination and remuneration committee Jeffrey Lehman and board chairman R Seshasayee "must accept their mistakes and show contrition", Narayana Murthy has said
Perhaps Narayana Murthy is benefiting India by setting new precedents in corporate governance. But Vishal Sikka is setting new precedents by introducing new standards in innovation and risk appetite