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Infosys Stock Up On Appointment Of Capgemini's Salil Parekh As CEO

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Shares of Infosys Ltd. were gaining around 3 percent in Indian trading Monday after the software-outsourcing company announced Saturday the appointment of Salil Parekh as chief executive officer, ending months long uncertainty.

Parekh succeeds former head Vishal Sikka, who quit in August following criticism from a group of founders, led by former chairman Narayana Murthy.

A member of the executive board at French IT-services firm Capgemini SE, Parekh will take charge as CEO and managing director for a five-year term that starts on January 2.

Meanwhile, Pravin Rao, who has served as interim chief executive since Sikka's exit, will continue in his previous role of chief operating officer and whole time director.

According to current chairman and co-founder of Infosys, Nandan Nilekani, Parekh has a strong track record of executing business turnarounds and managing very successful acquisitions, backed up by 30 years of experience in the global IT services industry.

In an emailed statement, Murthy said that he was happy with Parekh's appointment and sent him best wishes.

Sikka resigned as he lost support from Murthy and other co-founders, who criticized the company's corporate governance standards. Murthy had criticized the pay hike for senior executives during Sikka's tenure, as well as regarding the 2015 acquisition of Israeli group Panaya.

Infosys had hired global headhunting firm Egon Zehnder in its search for a permanent replacement, which the Board expected by the end of March.

Parekh will be based in Banglore, in comparison to Sikka, who ran Infosys from Palo Alto, California.

In India, Infosys shares were gaining around 2.8 percent to trade at 985.95 Indian rupees.

by RTTNews Staff Writer

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