Do you think that recent leadership change in Infosys is a question of governance? Comment on this
case of leadership change in Infosys in view of corporate governance.
Answers
The resignation of Mr. Sandeep Dadlani, in July 2017 and later the CEO Mr. Vishal Sikka, in August 2017 state that in order to run the organisation effectively, Management has to take some decision. If the heads of the institution is not in sync with the Management, then, it becomes very difficult to run the organisation. We can understand that Mr. Sikka was not in sync with the management from his resignation letter. He had stated that, “because of too many distractions and disturbances that he was quitting the organisation.”
If you see, Mr. Dadlani was “President and Head - Manufacturing, Retail, CPG and Logistics (MRCL) and also the head of its America business”. He was with Infosys for 4 years but he was running the Bengaluru unit. After his resignation, two officials have been appointed for the same post, which means, the work pressure had been more and he had been given too many responsibilities. This could have been realized by the organisation after him quitting. This is known as wrong governance.