Infosys CFO MD Ranganath to shift base back to India
, ET Bureau|
Jan 17, 2018, 07.33 AM IST
BENGALURU: Infosys' chief financial officer (CFO) MD Ranganath will shift his base back to India in 2018, to be closer to the IT firm's new Bengaluru-based chief executive officer (CEO) Salil Parekh, reversing one of the final management decisions made under former CEO Vishal Sikka.
Two sources with direct knowledge of the matter said the CFO had begun the process of officially moving back.
"With the new CEO being based out of Bangalore, it makes sense that the CFO would move back. The job involves a lot of travel. So, the base is less of an issue," a source with direct knowledge of the matter told ET.
In July, Infosys had said it was moving Ranganath to the US for business reasons and had increased his salary as part of the relocation. The company had said the move was a result of the company's expansion in the US and that it needed the chief financial officer to be based there to oversee that expansion.
A second Infosys executive confirmed Ranganath's official move back to India. The executive said Ranganath had spent much of the time since July in India as the company dealt with the significant upheaval caused by Sikka's exit in August. Infosys did not respond to a request seeking comment.
At the time when Ranganath's move to the US was announced, then Infosys CEO Vishal Sikka was under fire for violations of the corporate governance norms. In August, Sikka stepped down as CEO and left the company later that month along with three board members, including chairman R Seshsayee. Co-founder Nandan Nilekani took over the board and began the search for a new CEO. Parekh took over at the beginning of January.
Analysts say the return of the CEO is a sign that things have returned to normal.
"I don't know how many people believed in the business reasons. At that time, it seemed like his move to the US was part of the larger drama that was going on. But that has ended and now the company is clearly moving on," an analyst with a Mumbai-based brokerage said.
Two sources with direct knowledge of the matter said the CFO had begun the process of officially moving back.
"With the new CEO being based out of Bangalore, it makes sense that the CFO would move back. The job involves a lot of travel. So, the base is less of an issue," a source with direct knowledge of the matter told ET.
In July, Infosys had said it was moving Ranganath to the US for business reasons and had increased his salary as part of the relocation. The company had said the move was a result of the company's expansion in the US and that it needed the chief financial officer to be based there to oversee that expansion.
A second Infosys executive confirmed Ranganath's official move back to India. The executive said Ranganath had spent much of the time since July in India as the company dealt with the significant upheaval caused by Sikka's exit in August. Infosys did not respond to a request seeking comment.
At the time when Ranganath's move to the US was announced, then Infosys CEO Vishal Sikka was under fire for violations of the corporate governance norms. In August, Sikka stepped down as CEO and left the company later that month along with three board members, including chairman R Seshsayee. Co-founder Nandan Nilekani took over the board and began the search for a new CEO. Parekh took over at the beginning of January.
Analysts say the return of the CEO is a sign that things have returned to normal.
"I don't know how many people believed in the business reasons. At that time, it seemed like his move to the US was part of the larger drama that was going on. But that has ended and now the company is clearly moving on," an analyst with a Mumbai-based brokerage said.
