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Business Insider IndiaCEO of Infosys, Silal ParekhBCCL
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Salil Parekh’s induction into the post of Infosys CEO was supposed to mark a ‘fresh start’ for the company.
He is currently being accused of ‘unethical practices’ like reporting higher profits and revenues — and hiding it.
When he was brought on board in 2018, he was given more than $5 billion in cash to make large margin acquisition for Infosys.
Salil Parekh was named the CEO of Infosys just in January last year was supposed to mark a ‘fresh start’ for the company after massive layoffs in 2017.
In fact, he beat out internal candidates and former executives as he rose from being a business manager at Capgemini to the CEO of one of the biggest tech companies in india.
Come 2019, Parekh’s being accused of ‘unethical’ practices like misreporting higher profits and revenues by a group of whistleblowers. The allegations against him also include overlooking reviews and approvals to secure larger deals.
Here's a quick look at Parekh's story since he became CEO:
Parekh’s the only outsider, aside from Vishal Sikka — his predecessor — to land the post. Normally it was only the company’s co-founders or engineers, who were there since its inception, which cycled through the CEO’s office.
Vishal Sikka was also ousted by the company’s founders, led by Narayana Murthy, after similar accusations of misgovernance.
Nandan Nilekani, current Infosys chairman, was brought in to clean up the system at Infosys and Pakekh’s appointment was one part of it.
A graduate of the Indian Institute of Technology (IIT) Bombay, Parekh also holds a degree in Computer Science and Mechanical Engineering from Cornell University.
When Parekh was named CEO, he was given more than $5 billion in cash to make acquisitions. Infosys, at the time, was looking to move from low-margin outsourcing into more profitable verticals like digital services.
And, according to the quarterly reports since, Infosys has increased its margins — but this might only be on paper.
“He directs them (sales team) to make wrong assumptions to show margin,” stated the whistleblower complaint.
It added, “Several billion dollar deals of the last few quarters have nil margin. Please ask auditors to check deal proposals, margin, undisclosed upgrong commitments made and revenue recognition.”