Infosys Stock Falls 7%, CEO Resignation Cites Trump, H1-B Visas, Charlottesville

[pakdefender]

The blunt, emotional resignation letter by Infosys (INFY) CEO Vishal Sikka cites the difficulties the information technology consulting company has faced in doing business in the United States while addressing significant internal conflicts.

Infosys shares had slumped 7.7% in recent U.S. trading, while the iShares MSCI India exchange-traded fund (INDA) was up 0.5%

Chief operating officer U B Pravin Rao was named interim CEO until a new CEO is named. Sikka will serve as executive vice chairman and will work on large client relationships and strategy until a replacement is announced; that is expected by March 31, 2018. Cowenanalysts Bryan C. Bergin and Avishai Kantor note the CEO's resignation letter cites a breaking point from the "continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the company's transformation; this refers to multiple allegations and negative press over the last 4-5 quarters regarding INFY's former CFO separation ..."


Then, Infosys issued a press release responding to a letter authored by "Mr. Murthy, the founder of Infosys" and released to media outlets (not Barron's), accusing the Infosys board and management of failing to meet corporate governance standards. One conclusion: "The board assures its shareholders, employees, customers and communities that it is committed not to be distracted by this misguided campaign."

Infosys employees in the United States are among those who would be hurt should the United States curtail H1B visas, which help educated, specialized foreigners work in the United States. India's tech sector has been a strong beneficiary. This week's outcry from white supremacists in Charlottesville, Virginia was cited in the opening sentences of Infosys CEO Sikka's resignation letter, which he emailed to the company:

" ... the force to automate routine [activities], even advanced activities, is an unstoppable and exponential one. And the Charlottesville incident here in the United States demonstrated once again the power of words and silences to cause real damage, or to heal. After much reflection, I have concluded that it is indeed time for me to leave my current positions as managing director and chief executive officer ... I came here to help navigate the company through what I saw as a massive transformation opportunity, to transform our company and restore strong profitable growth, as well as help transform the business of our customers. ... No one anticipated the additional headwinds like the geo-political disruptions (Brexit, Trump, [H1B] visa, etc) that made this transformation even more challenging, but also rewarding. But, the distractions that we have seen, the constant drumbeat of the same issues over and over again, while ignoring and undermining the good work that has been done, take the excitement and passion out of this amazing journey ..."


http://www.barrons.com/articles/inf...s-trump-h1-b-visas-charlottesville-1503070674

 

[type93]

A major blow to the Indian economy. Could collapse soon lol

 

[Raphael]

A lot of Hindus in Bharat depend on remittances sent back from tech coolies dispatched to the US for work. So I am deeply concerned about the humanitarian impact from the slumping fortunes of a major coolie distributor like Infosys. Expect to see a surge in the already high poverty rates, malnutrition rates, suicide rates, etc of Hindus

 

[Rajaraja Chola]

He resigned cos of fight between ex CEO and founder Narayana Moorthy and Vishal Sikka.

And Chinese CCP 50 cents posters are already here boasting of how their company developed through stealing designs of foreign companies.

 

[denel]

Most indian IT consulting companies are garbage.... HCL, Infosys, Cognizant. Have worked with them... complete rubbish. only 1/1000 person is worthy of anything, the rest are just monkeys who only do what they are told on paper.