Bangalore: Struggling Indian IT consultancy Infosys has turned to its retired founder in a wide ranging set of executive management changes.
It has appointed N R Narayana Murthy as Executive Chairman of the Board and Additional Director with effect from June 1, 2013, replacing K V Kamath. Murthy described the move as, "sudden, unexpected, and most unusual".
Murthy's election for a five year term should be confirmed at the firm's Annual General Meeting (AGM) on June 15. K V Kamath has stepped down as Chairman of the Board and takes up the position of Lead Independent Director.
K V Kamath said, "The Board has taken this step keeping in mind the challenges that the technology industry and the company faces and in the interest of all stakeholders, particularly shareholders large and small, who have asked for strengthening of the executive leadership during this challenging time. Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time."
N R Narayana Murthy said, "This calling was sudden, unexpected, and most unusual. But, then, Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility. I am grateful to K V Kamath — the Chairman, the Board, and every Infoscion for giving me this opportunity. I intend to do my best to add value to the company in this challenging situation."
During his five year term,Murthy will draw a token compensation of Rupee One per year.
S Gopalakrishnan will be re-designated Executive Vice Chairman and will primarily focus on key client relationships and broader industry issues. S D Shibulal will continue to be the Managing Director and CEO.
Both Gopalakrishnan and S D Shibulal have also requested that they draw a compensation of Rupee One per year.
Narayana Murthy intends to create the Chairman's office to assist him during his tenure and has requested the Board to permit him to put together a team for this function. The team will include his son, Dr. Rohan Murty, as Narayana Murthy's executive assistant.
Rohan Murty is a Junior Fellow in the Society of Fellows at Harvard University. He has a Ph.D. in Computer Science from Harvard University and a Bachelor's degree in Computer Science from Cornell University and has held fellowships at MIT, Caltech, and Microsoft Research.