Will unveil new strategy in October- Nandan Nilekani, Chairman, Infosys

With the appointment of Nandan Nilekani as the Non Executive Chairman of the Board, with immediate effect clears all speculation on how to rescue from the present crisis after Nilekani is one of the seven founders, co-founders and CEO, Infosys served for 5 years and has to come back as the chairman of the board is an iconic leader. Post resign of Dr.Vishal Sikka resigned from the post of CEO and MD.

Nilekani a successful entrepreneur and investor, and someone who has played a pivotal role in India’s transition to a digital economy, India’s Aadhaar program, connecting over a billion Indians and which is transforming the lives of ordinary Indians every day.

By welcoming Nilekani, the outgoing Chairman R. Seshasayee, who stepped down from the Board today, stated, “Nandan is the ideal leader for Infosys at this stage in the Company’s development. His appointment will allow Infosys to focus on the strategic changes it needs to make in order to capitalize on the attractive opportunities in the years ahead. Under Nandan, Infosys will build a cohesive management team that will no doubt take the company to a leadership position in the industry. I believe these changes will infuse further confidence to the stakeholders in executing the transition plan and in reinforcing the strategy for the future. I am confident our employees and customers will join me in welcoming Nandan to the Company.”

Stepping down from the Board, with immediate effect was Dr. Vishal Sikka, Prof. Jeffrey Lehman and Prof. John Etchemendy, each of whom welcomed the appointment of the new Chairman. Dr. Sikka said, “Last week I said that my remaining on the Infosys Board was to primarily enable a smooth transition. In Nandan, we have found an ideal leader to manage this transition. "I welcome Nandan's appointment as Chairman to help guide Infosys to new frontiers of success and wish him, Pravin and all Infoscions the very best in the times ahead."

Prof. Lehman, who was scheduled to retire from the Board in April 2018, stated, “With Vishal's departure, Infosys is entering into a stage in which the time demands on independent directors will be compounded even further. In light of the other demands on my time, I think it best if I accelerate my departure from the Board by a few months to allow a new independent director to start in this important role.”

Prof. Etchemendy stated, “It has been a great honor and pleasure to serve the shareholders of Infosys for the past three years, and to have a front row seat during the transformative strategies that Vishal Sikka brought as the CEO. With Vishal’s departure, the board and his successor will embark on a new phase in Infosys’ future, and I think that giving up my board seat to a new independent director is the right decision.”

I will stay as long as necessary and I will go once I am not necessary. I will not put a timeframe on this and my appointment to the board is not with a time limitation. Of course, one of my tasks is to find a new CEO. My job is to ensure that the company is on the path to a sound future. Nilekani said.

The Board had, on August 18, 2017, appointed Dr. Sikka as the Executive Vice Chairman (EVC) to facilitate a smooth transition. This transition has been expedited with the appointment of Nilekani. Given that the EVC employment agreement with Dr. Sikka had not yet been executed, the Board, prior to the induction of Nilekani, decided that the Company will complete all resignation formalities as per Dr. Sikka’s employment contract as MD and CEO as executed on April 1, 2016 and approved by the shareholders.

Accordingly Dr. Sikka will receive 90 days’ base pay in lieu of notice of US$ 246,575, a variable pay of US$ 205,572 and company-paid COBRA (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.A separation agreement reflecting this and other terms such as a mutual release and non-disparagement obligation has been approved by the Board.

Nilekani added, I thank Vishal for his service as the CEO of Infosys over the last 3 years and wish him well in his future endeavors.”

The Company will organize two investor calls of an hour each to discuss the announcements. The first investor call has taken place at 10.00 am IST on August 25, 2017 (12.30 am EST; 12.30 pm Singapore/HK time; 5.30 am London time). The second investor call will take place at 6.00 pm IST on August 25, 2017 (8.30 am EST; 8.30 pm Singapore/HK time; 1.30 pm London time).

The dial-in numbers for the calls will be put up on the Company’s investor website. A Press conference will take place at 4.00 PM IST on August 25, 2017.

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