Nandan Nilekani is back at Infosys as new chairman

 Infosys has appointed Nandan Nilekani as the Non Executive Chairman of the company’s board. He is also one of the co-founders of Infosys and served as its CEO from 2002 to 2007.

The Executive Vice Chairman, Vishal Sikka and two directors, Prof. Jeffrey Lehman and Prof. John Etchemendy also joined the outgoing Chairman R. Seshasayee, who stepped down from the board immediately.

As Sikka’s new contract as executive vice-chairman had not been executed yet, the board has decided to complete all resignation formalities as per his earlier employment contract as MD and CEO.  Sikka had been named as executive vice-chairman on an annual $1 salary to facilitate smooth transition.

Sikka will receive 90 days’ base pay in lieu of notice of $246,575, a variable pay of $205,572 and company-paid employee benefits for 90 days. All equity awards outstanding as on separation date to the extent such awards are unvested will terminate on the date of separation. All equity awards that vested during his employment with the company will remain as vested as per the terms of the equity plan and award agreement.

The separation agreement, reflecting this and other terms such as a mutual release and the non-disparagement obligation, had been approved by the board, Infosys added further.

Upon the appointment of Nilekani as Chairman, Ravi Venkatesan stepped down from his role as Co-Chairman, but will continue on the board.

“I am happy to return to Infosys, now in the role of non-executive chairman, and look forward to working with my colleagues on the Board and in executive management on the business opportunities we see before us and delivering benefits to our clients, shareholders, employees and communities. I thank Vishal for his service as the CEO of Infosys over the last 3 years and wish him well in his future endeavors,” said Nilekani in a press statement.

U. B. Pravin Rao who will continue as Interim CEO and MD, while the board will continue with its earlier stated plan to identify a permanent CEO and MD.

Nilekani also stated that the Board will actively consider a broad based shareholder consultation process as a critical part of its overall engagement initiatives with all the stakeholders of the Company that are being taken up on a priority basis.