KV Kamath to step down, Infosys starts hunt for chairman

Firm braces for another high-profile succession planning, with KV Kamath set to step down.

Infosys, the country’s second largest information technology services company, will now have to find a successor for K V Kamath, its non-executive chairman, now president-elect of the New Development Bank being set up by BRICS nations.

In making the announcement, Union Finance Secretary Rajiv Mehrishi said the appointment would be effective when Kamath got free from current assignments. Kamath is also non-executive chairman at ICICI Bank.

It was only in June last year that Infosys’ hunt for a new chief executive officer came to an end, with the appointment of Vishal Sikka from SAP — the first non-founder CEO and managing director.

Before that, to facilitate a smooth transition and help the company to address some short-term challenges, N R Narayana Murthy, a co-founder, had to return from retirement, donning the role of executive chairman.

In the next couple of weeks, Infosys will have to shortlist names for a successor to Kamath, said sources close to the company.

“In the prevailing situation, Infosys would prefer to go with one of the existing board members as its new chairman."

'It could also bring in a complete outsider, a high-profile person, as it did while selecting the new CEO,” a senior source said.

A company spokesperson declined to comment. Sources said the board would start the process after it got a formal communication from Kamath on his decision.

Among the insiders, the company could consider R Seshasayee, on the board as an independent director since 2011.

“Or look at a complete outsider like M S Banga, former chairman of Hindustan Unilever,” added another source.

Banga is currently a senior partner at private equity fund Clayton Dubilier & Rice. He is also said to be close to Murthy and played a role in Sikka’s selection.

Kamath joined the Infosys board in 2009, replacing then chairman Murthy after the latter retired from the company in August 2011.

After the latter returned in June 2013 as executive chairman, Kamath was made the lead independent director.

After Murthy decided to step down with Sikka's selection, Kamath again became non-executive chairman.

Photograph: Courtesy, Infosys