We need to know other side of the story too that reads as under:
Goodbye Mr. Sikka…Your Legacy is a series of failed promises.
Vishal Sikka will go down in history as possibly the most controversial CEO in the history of corporate India. His run ins with the company's founders began with his very appointment. He was supposed to be based in India, but he "chose" to unilaterally be based in the US. He was supposed to spend 17 days in India but he chose not to do so as the clients were in US. His autistic child was a reason but he never lived up to his other promises either.
Unfortunately, his mistake was that he thought applying American rules to an Indian Company with iconic founders would work for him. He never spent time in India or even bonded with employees. He talked down on them and got rid of employees like nine pins. When Rajiv Bansal tried doing his job right, he asked him to do "something else". I am yet to see any CEO who comes in with such equity and then messes around with everyone in the company – from founders to key team members. When Rajiv Bansal refused to "do something else" Sikka asked David Kennedy to get id of him. Yes, get rid of him is the operating word.In large corporation, people mean nothing but when great companies led by people like Vishal Sikka start deploying their fire power against people, the result has to be disastrous for everyone.
Along with setting a target of $20bn., he also promised 30% automation and a $1.5 bn in revenues through the inorganic route. He failed on all counts and when he was asked to increase entry level salaries, he refused to do it but enriched himself. He tried buying out journalists with access and interviews. Lied to board members and exchange and regulators.
The board shockingly says they didn't know about the severance pay of Rajiv Bansal as David Kennedy hid it. But why did Kennedy hide it? At the behest of Sikka. And why should the board not be punished? Ravi Venkatesan said they goofed up and Seshasayee said it was an error of judgement. But who paid a price? Investor did.
In the event, legal counsel David Kennedy struck a silent deal with Rajiv Bansal and came to an agreement but did not give it in writing, that is when Bansal refused to sign the October quarter numbers in 2015. Bansal is known to be an upright, honest and good CFO, even if he was a bit young. He took a part of his severance and left, but Infosys dropped the remaining pair of his severance and planted a story in a leading paper saying "Bansal transferred official mails to his personal email". The tool that Sikka used was the PR agency in India which enjoys significant clout with media houses and represents a large number of corporates. My heart breaks that newspapers today buy one side of the story which is a commentary of the CEO and the PR Agency. Bansal paid a price for doing his job. I am yet to hear of a CEO who goes to a press conference and says, "There were chemistry issues with the CFO; so he left". Shows Sikka was never ready for the job. No seasoned CEO would ever talk badly about his CFO in public or say he didn't get along with him.
Infosys CFO Bansal made the cardinal mistake of standing up for what he believed in and protested against the Panaya deal. He wrote extensively on the conflict of interest and valuation.
Sikka was a major beneficiary of a weak non-executive board that gave him a free hand. He threatened to quit every time a question was raised and so the board backed off and let him control the narrative. Sikka spend more time on PR agencies than on business or his team because he was busy building an image for himself.
When Sikka joined Infosys, the company's shareholders and promoters were enthused by his worldview on how the IT services company had to transform. But within six months, he was making controversial acquisitions and firing his CFO Rajiv Bansal.
From the start, Sikka did nothing to get a buy-in from stakeholders of his CFO on anything – acquisition of Panaya for a consideration of $230mn just after it raised a round of funding at a valuation of $162 mn. Sikka will go down in history as a brilliant case study of a CEO who did not get along with his stakeholders, founders , key management personnel and even other employees. Sikka chose the wrong battles from the start. He chose to increase his salary before he demonstrated his mettle and turned around the company. Then, Sikka went on to arm twist the weak board to agree to a massive severance package of $22 mn. Vishal Sikka employed every tool in the book to extend his salary. He divided the board and spread campaigns against Rajiv Bansal and various other board members, but the truth is that you cannot fool everyone all the time.
The market soon enough figured that he was nowhere near the $20 bn target, which got him his salary hike but nothing for the company. Sikka used the PR machinery extensively to project him in the media and his version of the story. His spin doctors accused the founders of interfering and derailing the transformation of the company. He I am tole treated Indian employees badly and spoke down on them. Chickens have come home to roost for Vishal Sikka finally. Days after Ravi Venkatesan spoke to me on the failures of the management and CEO, Vishal Sikka has finally decided to put in his papers.
Getting the interview published was not easy and Sikka and his machinery there too controlled the narrative and completely changed the interview. When I asked Sumit Virmani, Chief marketing officer on why they did that, he assured me that it would build a better relationship even though the company had doctored the interview completely.
These are times we live in and people like Sikka murder reputations and destroy careers. Hope his departure helps Infy find its feet again. And an investigation committee brings out the reports and the other details of Panaya deal.
Thoughts on Sikka resignation and Infy by Business Standard Associate Editor, Malini Bhupta.
Regards
Virendra Goel
From: join_mtc@googlegroups.com [mailto:join_mtc@googlegroups.com] On Behalf Of supriya biswas
Sent: Saturday, August 19, 2017 6:23 PM
To: join_mtc@googlegroups.com
Subject: Re: [MTC Global] Why can't Founders get along with the CEOs they appoint? [After Vishal Sikka left this morning]
It is because we are yet to emancipate ourselves from the mindset of treating employees as servant not colleagues. With proud claims like we are open and treat people as our equals - those are plain and simple whitewash and hoax. We are still obsessed with the 'Sir' culture. Besides, most groups have a caucus and they run the show. It only happened in Apple that founder was thrown out. Apple is one of the top three brands of the world because of such professional outlook that is free from emotional bunglings
Sent from my Samsung Galaxy smartphone.
-------- Original message --------
From: Purnima Roy <purnima14123@hotmail.com>
Date: 19/08/2017 8:13 am (GMT+05:30)
Subject: Re: [MTC Global] Why can't Founders get along with the CEOs they appoint? [After Vishal Sikka left this morning]
V true. But so disgraceful to wash your dirty linen in public. It was TATA and now Infosys!!
Best Regards.
Purnima Dey Roy
CEO-PGTA India
From: join_mtc@googlegroups.com <join_mtc@googlegroups.com> on behalf of Dr. S. S. Dey <drshibshankar@gmail.com>
Sent: Friday, August 18, 2017 10:48 PM
To: join_mtc@googlegroups.com
Subject: [MTC Global] Why can't Founders get along with the CEOs they appoint? [After Vishal Sikka left this morning]
1. The founder has never experienced people in his Company being more powerful & taller than him. He has seen people in shadows; not as the Sun. When the appointed CEO begins to become bigger than his past, he can't reconcile with it.
2. The petty becomes big. Molehills become Mountains. Small issues the new CEO does makes the founder explode. It's just pent up emotions looking for an excuse to be released.
3. Founders feels very uncomfortable when people in their companies start becoming "irrationally rich". It's an emotional weakness created by struggling for years and going through horrid times. When money never came easy, it can't be given away easy either.
Regards,
Dr. S.S. Dey
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