IGate ex-CEO Phaneesh Murthy removed from company’s board

Mangalore Today/NDTV

Reuters - Jun 8, 2013: Majority of shareholders removed former CEO Phaneesh Murthy for ’cause’ from the iGATE board by written consent in lieu of a meeting.

Murthy’s removal will be effective from June 7, 2013.

 

IT outsourcing company iGATE has recently sacked chief executive Phaneesh Murthy after a company sexual harassment investigation revealed that he had not disclosed a relationship with a subordinate.

Murthy, one of the industry’s best-known executives, was forced to quit India’s second-biggest software services exporter Infosys Ltd in 2002, following a sexual harassment lawsuit, which was settled out of court.

Murthy was a rising star at Infosys and was seen by many as on track to be the company’s first non-founder chief executive before the sexual harassment lawsuit abruptly ended his tenure.

After leaving Infosys, Murthy founded a company that was bought by iGate. In 2011, he teamed up with buyout firm Apax Partners for iGate’s $1.2 billion purchase of much-bigger Indian rival Patni Computer Systems.

iGate shares, and revenue, have more than quadrupled since Murthy joined the company in mid-2003, according to Reuters data. The stock has gained 4% in 2013, lagging the S&P 500 IT consultancy subindex, which is up 8.8%.