Infosys chairman to step down in August

Sufia Tippu
Monday, 12 June 2006 11:33

IT Industry - Market

Infosys Technologies will announce a successor to its founder, chairman and chief mentor, N.R. Narayana Murthy, next month. 

At the company’s 25th annual general meeting in Bangalore, attended by thousands of shareholders, it was announced that the Infosys board would decide about his successor on July 11.

Murthy will relinquish his posts when he turns 60 on August 20.

Sharing his vision for Infosys for the next 25 years, Murthy said "I would like Infosys to be more multi-cultural, more competitive and add more value to our customers day after day."

"My commitment to Infosys will continue. However, the youth in the company will take over the mantle," Murthy said ruling out his entry into politics even if invited by any political parties. Earlier there were a number of rumors that he was nurturing political ambitions.

However, the Infosys management wants its chairman and mentor to stay on. "We would very much like Murthy to continue as chairman. Infosys would love to have the benefit of his value, wisdom, insight, capacity and guidance whenever required," said Infosys CEO and managing director, Nandan Nilekani.

Addressing the AGM, Murthy recalled the key events at Infosys during the past 25 years. "Infosys is a shining example of the success of the economic reforms introduced in 1991. We have demonstrated that Indian brands can receive attention and respect in the developing countries,” he said.

Murthy said he felt that women, who constituted 27.3% of the total staff number, should play a key role in shaping up the future of Infosys by accepting positions at the senior management level.

Further, he said that Infosys is targeting to earn an ROCE (return on capital employed), which is at least twice the cost of capital and an ROIC (return on invested capital), which is at least three times the cost of capital.