CEO dismissed for failing to disclose professional-personal bond with staff member
In a shocking turn of events, Phaneesh Murthy, ex-CEO of the billion-dollar Indian outsourcing behemoth, iGATE, has been given the boot for keeping under wraps a cozy relationship with one of his employees. The company had enlisted the aid of external legal eagles to delve into the claims that Murthy had taken his cozy rapport with his colleague to thenext level, along with a sexually charged allegation.
The investigation, unveiled just yesterday, has ascertained that Murthy's non-disclosure of this relationship breached iGATE's policy and his employment contract. However, the probe has yet to uncover any transgressions of the company's sexual harassment policy.
Murthy has a history of skirting around such controversies. Back in 2002, as director and global head of sales at the IT behemoth, Infosys, he was accused by a US-based employee of an ongoing sexual harassment and intimidation campaign, hoping to persuade her into a romantic rendezvous[2]. Infosys opted for a quiet settlement of $3 million and Murthy bid adieu to the company.
At today's press conference, Murthy ridiculed the charges stacked against him, branding the whole episode as a case of blackmail. "This undoubtedly smacks of extortion," he declared, citing the very same lawyer representing the accuser in 2002 as the lawyer standing beside the current accuser, hinting at a conspiring conspiracy[3]."
Murthy joined iGATE's BPO division, iGATE Global Solutions, in 2003 after the company purchased the firm he founded following his departure from Infosys. He was eventually promulgated to the overall CEO position in 2008 and handled the acquisition of Patni Solutions in 2011[4].
Sunil Wadhwani, iGATE's co-founder, co-chairman, and Murthy's former CEO, has commented, "The board engaged in lengthy deliberations on this matter. We acknowledge the substantial contributions Mr. Murthy has made over the past decade in helping make iGATE a force to reckon with in the IT industry. He has tirelessly strived to raise the value of iGATE, and his efforts are much appreciated. That being said, due to this violation of iGATE policy, we asked Mr. Murthy to relinquish his position."
The investigation into Phaneesh Murthy's cozy relationship with an employee at iGATE has revealed that he breached the company's policy and employment contract, but there's no evidence of transgressions against the sexual harassment policy. Despite the latest controversy, Murthy's history of skirting around such allegations dates back to 2002 when he was accused of sexual harassment and intimidation at Infosys, resulting in a confidential $3 million settlement.
