Ex-Infoscians in race for CEO post

With co-founder Nandan Nilekani at the steering of the $10-billion information technology (IT) firm Infosys's Board, the scout for a new CEO has intensified with names of many old timers such as Ashok Vemuri, B G Srinivas and Sandeep Dadlani cropping up.

This has sparked a debate on whether the chief executive at the second-largest IT company should be an insider or an outsider.

V Balakrishnan, former CFO of Infosys, told DNA Money it would be immaterial where the next CEO came from if he possessed sound technological knowledge and sharp salesman skills.

"It doesn't matter if he is an insider or an outsider. You need a person who understands technology, connects with clients and is very good in sales because the environment has become tougher today," he said.

On names of next CEO doing the rounds in the industry circle, he said these candidates were in the reckoning for heading Infosys before they quit the company.

"They are good people. Ashok and Dadlani were CEO candidates before they left but I don't know whether they would be willing to come (back)," he said.

Former CEO Vishal Sikka was intensely criticised for being based in the US and remaining disconnected with a large number of employees who were located in India.

Balakrishnan said while there was no "hard and fast rule" on where the CEO should be based in, he said it would be desirable if the next CEO divided his time between India and abroad.

"There is no hard and fast rule for it (where the CEO should operate from) but since it (Infy) is a large organisation of over two lakh employees, I think employee management is also critical for operation. Since 70% of the employees are based in India, so any CEO who comes has to spend an equal amount of time between India and the market where we operate in. So, I think, (the CEO should be) based in India and travelling around the world meeting customers, (this) will be a good combination," said the former finance chief, who is said to be close to N R Narayana Murthy, one of the founders of Infosys.

Kris Lakshmikanth, founder chairman and managing director of The Head Hunters India Pvt Ltd, said the IT bellwether should look at someone who has dealt with customers and worked in the company's largest market of US.

"My own assessment is that CEO has to be someone who is customer-facing, who has dealt with customers, who has worked in the US and knows the market place outside India. He cannot be someone who is sitting in India like U B Pravin Rao (current interim CEO), who has hardly ventured out (of India)," he said.

Giving specific names, he said Infy could look at Sandeep Dadlani, ex-Americas head of Infosys, who quit in June to "pursue personal interests elsewhere".

According to Lakshmikanth, Dadlani would fit the bill as the US constituted around 60% of Infosys's business and he handled Americas during his tenure at the company.

"He (Dadlani) was the head of the US geography. He is very strong in the digital area. He has now become the chief digital officer for Mars chocolate," said the promoter of the headhunting firm.

Other ex-Infosys executives he backed were B G Srinivas, president and member on the Board and head of Europe, who resigned in 2014, and Ashok Vemuri, who was heading North America and left Infosys in 2013 because Sikka joined.

Lakshmikanth said Srinivas was now with Hutchison in Hong Kong while Vemuri had joined iGate, which was later sold to Capgemini; "Why I am talking about these three is because they have worked with founders, and have succeeded at it. They also know the company's system well".

Pankaj Pandit, a former Infosician, advocated for an outsider; "The hazard of getting insiders (as CEO) is that they know more and more or less and less. If the old boys club reassembles then they could look at the past instead of the future of the company".

Meanwhile, a regulatory filing by Infosys on stock exchanges, states that its promoters have expressed interest in participating in the company's Rs 13,000-crore share buyback programme.

"In terms of buyback regulations, under the tender offer route, the promoters have the option to participate in the buyback. We would like to inform that some of the members of the promoter and promoters Group of the company have communicated their intention to participate in the proposed buyback," said the company's filing, which did not specify which promoters would participate in the buyback.

The promoters hold 12.75% in Infosys.

The company plans to buy back 11.3 crore shares at Rs 1,150 apiece. Infosys' first-ever buyback is second only to the Rs16,000-crore share repurchase by its bigger rival Tata Consultancy Services announced in April.