Abstract

This case study discusses the corporate governance issues faced by Infosys Limited, an Indian multinational corporation offering business consulting, IT, and outsourcing services. The case explores how Vishal Sikka (Sikka), who had joined Infosys in June 2014 as the company’s first non-founder chief executive, stepped down, citing increased personal attacks as the reason. The case also reviews the long-drawn scuffle between the board, the founders and the management. It also presents the challenges that Infosys faced in terms of corporate governance and also in finding an appropriate successor to Sikka. At the end, it facilitates a critical discussion on the over intervention of the founders in the company’s issues and how Sikka’s exit could affect the company’s performance in the near future. The question remains whether it was the founders, the board, or Sikka himself, who were responsible for the lapses in the company’s corporate governance.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Identify the key motives/reasons why corporate governance is important for companies
• Understand the roles of the CEO and founders in matters of corporate governance
• Analyze the importance of succession planning for executives
• Understand the significance of a board

Keywords

IT Services; India; Infosys; Corporate Governance; Succession Planning; Board