Corporate Jun 1, 2013
Nasscom's Som Mittal welcomes Murthy's return
Welcoming, Narayana Murthy's appointment as Executive Chairman, Nasscom president Som Mittal applauded the IT giant's decision, terming the decision to bring back Murthy as an important turning point for Infosys.
"At this juncture it will be good for both Infosys and the industry. I welcome Murthy's return to Infosys in executive role, said Mittal.
"We can't write off Infosys on basis of past 2 years performance," he added.
Murthy's job will be to mentor next generation of leaders: Mohandas Pai
Mohandas Pai, Infosys ex-CFO, said the staff and share holders will be happy on Murthy's comeback as there are challenges and company was not performing very well. Even though his return is a surprise the move is expected to help Infosys, said Pai.
Need of the day is to add value to Shibulal, saus Murthy
Terming his appointment as Executive Chairman of Infosys as a unique opportunity and a second inning of sorts, NR Narayana Murthy today said his top priority will be to add value to the company's vision by helping the management in its decision-making process with alacrity.
NR Murthy also said that it's unfair to say that the Founder CEO model has not worked. He emphasized that his primary objective is to add value to the current management's objectives. He, as executive chairman, would focus on enhancing large deals.
He also clarified that his return is not his strategy, but rather the company's strategy.
Value comes best by helping management implement decision, says Murthy
Going forward, he said the management as a team will do its best to address the challenges faced by the company. "Value comes best by helping the COO implement decisions with alacrity and by enhancing excellence," he said.
My son has no leadership role, says Infy's Murthy
Commenting on the appointment of his son as executive assistant to Murthy, he said that the post retirement period was set apart for doing things that he enjoyed most. "When I was requested to come back the quickest way for me to add value to the company is by utilizing the competencies of a small team of people that I have been interacting with for the last two-three years, and one of them happen to be my son Rohan." He added that Rohan Murthy will have no leadership role but rather to make Murthy more effective.
When I left, never in my wildest dreams did I imagine I will be back here: Murthy
NR Narayana Murthy today addressing the media said that he had never imagined he will be back at Infosys as executive chairman. "When KV Kamath requested me to join the board, I was in a dilemma but then I realised this is a unique opportunity for me to add value to the company," he said today, adding that in some sense his return is like a second innings of sorts.
NR Narayana Murthy has returned to Bangalore-based Infosys at a time the company is going through challenging times and failing to keep pace with its rivals like Tata Consultancy Services , HCL Technologies , Accenture and Cognizant Technologies. The move is being termed as a crisis call as the current leadership has failed to deliver.
12:47 pm Murthy's return will boost employee morale, says Kiran Mazumdar Shaw
I am confident, Murthy will restore Infosys to its original glory but he must be given reasonable time to reboot the business, says Biocon chief Kiran Mazumdar Shaw, adding that his return will surely boost employee morale. She cautioned that expectations of a sudden turnaround should not rise too high.
Attrition, client acquisition Murthy's biggest challenge, say analysts
Sudin Apte, Offshore Insights too agrees that employee morale will change with Murthy's return. He, however, believes the biggest challenge for Murthy will be to address the company's high attrition level, visa issues in the US and client acquisition.
Expect a strong rally on Monday
Brokerage Equirus Securities expects a strong rally on the Infosys stock post the change of guard at the IT company but cautioned that the market's biggest concern is the Infosys' attrition level.
Murthy was brought back as current leadership failed to deliver, says Greyhound Research
Greyhound Research on the other hand hopes Murthy is able to bring back acquisitions. The research house believes Murthy was brought back as the current leadership failed to deliver." Infosys is not strategic enough, it is too conservative and made a mistake by letting go of second-tier management,' Greyhound said in an interview with CNBC-TV18.
A drastic but welcome move
"This is a drastic, some might say, welcome move," Ankur Rudra, sector analyst at Ambit Capital,was qupted as saying by Reuters. The brokerafe has a "sell" rating on the stock. "Probably, this could be a step towards a new strategic direction and leadership as well."
12 noon The recall was sudden unexpected and most unusual, says Murthy
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 Mr. 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."
Narayana Murthy returns to Infosys as executive chairman
IT major Infosys today appointed NM Narayana Murthy as the executive chairman of the company board. He had earlier resigned as chairman in 2011 and become chairman emeritus of the board.
" In a meeting held earlier today, the Board approved appointing Mr. N R Narayana Murthy as Executive Chairman of the Board and Additional Director with effect from June 1, 2013," the company said in a statement.
Infosys said it will put the matter before shareholders at its annual general meeting on June 15.
Murthy gets a five-year tenure with a compensation of Rs 1 per year.
K V Kamath would step down from his position as Chairman of the Board and take up the position of Lead Independent Director effective June 1, 2013.
Murthy 's core team will include his son Dr Rohan Murty, as Narayana Murthy's executive assistant.
The move comes at a time when Infosys seems to have lost its mojo.
K V Kamath: Board has taken this step keeping in mind challenges that IT industry and company faces
Commenting on the development Kamat 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."
Narayan Murthy, Gopalakrishnan, Shibulal would draw a token compensation of Rupee One per year
S Gopalakrishnan would be re-designated Executive Vice Chairman effective and would primarily focus on key client relationships and broader industry issues. S D Shibulal would continue to be the Managing Director and CEO.
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