The old order was restored at the second largest information technology (IT) firm Infosys with Nandan Nilekani, one of its founders, appointed on Thursday as the chairman of the company's Board, replacing R Seshasayee who stepped down from his position.
Thursday's development came after over a year of wrangling between the Infy founders, led by N R Narayana Murthy, and company's Board, with Seshasayee in the forefront, over the issue of corporate governance. The war between the two factions was fought in the media.
Earlier this week, Vishal Sikka, who was at the helm of the company's management, also resigned due to immense pressure exerted on him from the founders.
Other Board members, who resigned along with Seshasayee, were Ravi Venkatesan co-chairman, Vishal Sikka, executive vice chairman, Jeffrey Lehman, director, and John Etchemendy, director.
V Balakrishnan, former CFO of the $10-billion tech company, told DNA Money that the appointment of Nilekani would end the "uncertainty" in the company and offer "comfort to shareholders, employees and clients.
"It's a very good development because you cannot have too much of uncertainty for a long time in a company like Infosys. Nandan coming back to Infosys is good because it will give comfort to shareholders, employees and even the customers will be happy because they don't like uncertainty in any organisation with whom they deal with. It's a positive development that every investor should welcome," he said.
Listing the tasks that Nilekani should immediately take up, he said, "I think his priority should, number one, be to get a Board. If you look at the experiment which happened in 2014 of moving from founder-driven company to professional-driven company, it failed. That experiment failed because the Board has let down the investor. I think we have to focus on restructuring the Board by letting some of the people go and get new people to get the checks and balances right."
The former senior Infosys executive said the Nilekani should also try and appoint a good CEO for the company on an urgent basis.
"He should form a committee and try to get a good CEO, who will take the corporation to the next level," said Balakrishnan.
According to him, it was equally important for the new Infosys chairman to scout for someone who would succeed him in future and prepare second level of leadership.
"He (Nilekani) should also focus on the next chairman. We need to have a good chairman who'll make sure the checks and balances are alive and the culture and value system are maintained. Infosys has got a good team of second-level leaders. They have to have a communication with all stakeholders, employees, institutional investors, customers and founders," said ex CFO M Damodaran, former chief of Securities and Exchange Board of India (Sebi), told a leading business channel that Infy co-founder will "hit the ground running" and was the best choice for heading the Board.
"Most importantly, in all that has happened in the recent past, he has not taken any position, one way or the other, publicly; has not made statements that are destabilising and therefore it is a good move (appoint him as the chairman). They (Infosys Board and institutional investors) couldn't have chosen anyone better," he said.
A press statement issued by the second-largest IT firm said Nilekani had also been given the role of non-executive and non-independent director.
The outgoing chairman R Seshasayee said Infosys would build a cohesive management team under Nilekani that will take the company to a leadership position in the industry.
"I believe these changes will infuse further confidence to the stakeholders in executing the transition plan and in reinforcing the strategy for the future," he said in a statement issued by Infy.
Sikka felt Nilekani's appointment would "enable a smooth transition" in the company.
Prof Lehman, who was to retire from the Board in April 2018, said; "With Vishal's departure, Infosys is entering into a stage in which the time demands on independent directors will be compounded even further. In light of the other demands on my time, I think it best if I accelerate my departure from the Board by a few months to allow a new independent director to start in this important role."
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 "Nandan Nilekani")
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