New Delhi: NR Narayana Murthy on Saturday returned to Infosys with the IT company appointing him as Executive Chairman of the Board. Murthy, who founded Infosys in 1981, had stepped down from the Board and became Chairman Emeritus in 2011. He has served as company's CEO from 1981 to 2002.
KV Kamath, Board Chairman, will step down from his position and take up the position of Lead Independent Director effective from June 1, 2013.
Narayana Murthy will get a five-year tenure at a compensation of Re 1 per year. Apart from Murthy, Infosys' Managing Director and CEO SD Shibulal and S Gopalakrishnan, who would be re-designated Executive Vice Chairman, will also get compensation of just Re 1 per year. Narayana Murthy's son, Rohan Murthy, has been appointed as his Executive Assistant.
"The Board has taken this step keeping in mind the challenges that the technology industry and the company faces and in the interest of all stakeholders, particularly shareholders large and small, who have asked for strengthening
of the executive leadership during this challenging time," Kamath said.
Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time, he added.
The business world has welcomed the news of Murthy coming back to Infosys. Mohandas Pai, Infosys ex-CFO, said the staff and share holders will be happy on Murthy's comeback as there are challenges and company was also not performing very well.
Even though his return is a surprise but the move is expected to help Infosys, said Pai.
Kiran Mazumdar-Shaw, Biocon chief, said Narayana Murthy is a very strong leader and his comeback will stabilise the company's situation. It will bring back the confidence of employees, everyone would be delighted with this news.