Indian IT bellwether Infosys Ltd Saturday appointed its co-founder and chairman emeritus N.R. Narayana Murthy as executive chairman and additional director on its board.
In a regulatory filing with the Bombay Stock Exchange (BSE), the global software major said incumbent K.V. Kamath would step down as chairman of the board from Saturday and be an independent director.
"Murthy's election as a director (for five years) will be placed for the consideration of the shareholders in the Annual General Meeting (AGM) in Bangalore June 15," the company said in the filing.
Murthy retired as executive chairman August 2011 on turning 65-years old, and Kamath assumed the post as non-executive chairman with co-founder Kris Gopalakrishnan as co-chairman.
The decision to bring Murthy back into executive leadership as chairman was taken by the board at an emergent meeting earlier in the day.
"This calling was sudden, unexpected, and most unusual. But, then, Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility," Murthy said in the statement.
Welcoming the move, Kamath said Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time.
"The board has taken this step keeping in mind the challenges that the technology industry and the company faces, and in the interest of all stakeholders, particularly shareholders large and small, who have asked for strengthening of the executive leadership during this challenging time," Kamath, former chief executive of India's leading private bank ICICI Bank Ltd said in the statement later.
S. Gopalakrishnan will be re-designated executive vice-chairman and would focus on key client relationships and broader industry issues.
S.D. Shibulal will continue as the chief executive and managing director.
"As Gopalakrishnan and Shibulal have requested that they draw a compensation of Re.1 per year, the board has accepted their requests, subject to shareholders and government approvals," the statement added.