Board of directors of iGate has terminated its president and CEO Phaneesh Murthy on sexual harassment charges by a subordinate employee.
Gerhard Watzinger has been appointed as interim president and CEO.
Sunil Wadhwani, co-founder and co-chairman of the board of iGate has acknowledged Muthy’s immense contribution in iGate’s success. He further said since Phaneesh has violated iGate’s policy so board has asked him to step down.
“The Board deliberated extensively on this matter,” said Sunil Wadhwani, co-founder and co-chairman of the board of iGate. “We recognize the significant contributions Murthy has provided over the past ten years in helping to establish iGate as a leader in the IT industry. He has worked hard to improve the value of iGate, and we greatly appreciate his efforts. However, as a result of this violation of iGate policy, we asked Murthy to step down.”
This is second time when Phaneesh faced sexual harassment case. Before this former Infosys employee Rekha Maximovitch had filed a sexual harassment case against Murthy.
This decision is not going to hamper iGate performance as company is focused towards its strategy of providing quality services to shareholder.This has been explained by iGate.
“iGate has great resources and a deep bench of talent from which to draw upon to further create shareholder value,” said Watzinger. “We have a clear strategy that has put us in this strong position to maintain our successes into the future. Continuing to execute this strategy is our top priority.”
iGate has constituted a search committee within the board of directors which will oversee the process for the identification and selection of a new president and CEO.