Infosys President Sandeep Dadlani Quits
Dadlani is the ninth top Infosys executive to quit since Sikka took over in 2014.
Infosys Ltd., grappling with slower growth, adverse visa regimes, and criticism from founders, lost yet another top executive.
Sandeep Dadlani, who headed the manufacturing, retail, consumer packaged goods and logistics verticals, and was also responsible for new ventures resigned, the Bangalore-based company informed in its exchange filing. Dadlani will be replaced by two people from within the organisation.
Dadlani, who had joined the company in 2001, was one of four presidents of the company and was in charge of a division which contributed according to Morgan Stanley's estimates, 46 percent of the information technology firm’s total revenue.
“I have decided to pursue my personal interests elsewhere. Next up: An out-of-the world assignment! Stay tuned," Dadlani wrote in a post on the professional networking site LinkedIn. Dadlani’s annual compensation in the last financial year was Rs 14 crore according to Infosys’ annual report.
Dadlani is the ninth member of the senior management team to leave the company since Sikka took over in 2014.
Dadlani’s Replacements
Infosys split Dadlani’s role into two, and appointed Karmesh Vaswani as the global head of retail, consumer packaged goods and logistics divisions, and Nitesh Banga as the global head of manufacturing.
The information technology firm also appointed Inderpreet Sawhney as group general counsel effective July 3.
Problems Galore
Sikka and the Infosys board had come under fire from the company’s founders including NR Narayana Murthy, for alleged corporate governance violations and hefty pay raises given to the CEO and his deputy.
Infosys, which expects revenue in constant currency terms to rise between 6.5 percent and 8.5 percent in the the financial year 2017-18, said earlier this week that the new visa regimes in the developed markets could hurt profitability.
The news about Dadlani’s departure will only add to the negative sentiment surrounding the stock, Morgan Stanley said in a note to clients.
The brokerage house retained its 12-month price target of Rs 1,000 on Infosys, with a 20 percent probability of a bull-case scenario, despite a volatile macro-economic environment. The chances of business uncertainty is pegged at 60 percent, by the brokerage house.