Infosys Shares Nosedive Amid CEO Row
Shares of Infosys plummeted nearly 17% on Tuesday, wiping Rs 53,451 crore from its market valuation. The IT company suffered the worst single-day drop in over six years.
The dive in the shares comes a day after the company received anonymous whistleblower complaints pointing to multiple instances of unethical practices by top executives to boost short-term revenue and profits.
While the whistleblowers accused CEO Salil Parekh of leading an effort to shore up profits through irregular accounting, Infosys said one of the complaints dealt largely with allegations relating to his international travel to the US. The company on Monday said the whistleblower complaint “has been placed before the audit committee as per the company’s practice and will be dealt in accordance with the company’s whistleblower policy.” The allegations come just two years after the IT major endured a shake-up that saw its top boss Vishal Sikka leave the company.
While the whistleblowers accused CEO Salil Parekh of leading an effort to shore up profits through irregular accounting, Infosys said one of the complaints dealt largely with allegations relating to his international travel to the US. The company on Monday said the whistleblower complaint “has been placed before the audit committee as per the company’s practice and will be dealt in accordance with the company’s whistleblower policy.” The allegations come just two years after the IT major endured a shake-up that saw its top boss Vishal Sikka leave the company.
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