Tag: CEO

Infosys shake-up shakes company up

web-chocolate-shake-maltInfosys’s board of directors meeting saw the resignation of Dr. Vishal Sikka as the Managing Director and Chief Executive Officer.

Dr. Vishal Sikka was  appointed the Executive Vice-Chairman, Mr. U B Pravin Rao as the Interim-Managing Director and Chief Executive Officer.

A press release for the succession plan for appointment of a new Managing Director and Chief Executive Officer has been operationalised by the Board and a search for a new CEO has started.

The company’s stock tanked nearly 10 percent down on the back of the news.

An Infosys statement said in his new role Sikka would continue to focus on strategic initiatives, key customer relationships and technology development. He will report to the company’s board and receive an annual salary of $1 during his tenure.

In a filing to BSE, the company said: “Sikka reiterated his belief in the great potential of Infosys, but cited among his reasons for leaving a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing the management’s ability to accelerate the company’s transformation.”

Differences were simmering between NR Narayana Murthy, one of the Infosys founders, and Sikka for some time, with the former repeatedly criticising the latter’s policies in the organisation.

In an interview with a business daily published on Friday, Murthy had revived his diatribe against Sikka, saying some of the board members felt the Silicon Valley import was more of a CTO material and not fit for the CEO position.

IBM gives cash to top suits

44ce1d7353cc797d6d0ad093f04f32c7Big Blue might be seeing its profits drop down the loo, but that has not stopped it paying bonuses to its top suits.

IBM has brought back annual performance bonuses for its chief executive and her top lieutenants for 2014 despite falling profits and a tumbling stock price.

According to a regulatory filing, the outfit withheld annual bonuses in 2013 at the executives’ own request.  The company has had more than 11 quarters of falling profits and is still trying to lose staff.

The bonuses returned as a feature of IBM’s executive compensation for 2014, according to a document filed with securities regulators on Friday, despite the fact that IBM’s net profit from continuing operations fell 7 percent last year and its stock shed about 14 percent.

IBM CEO Virginia Rometty will get a $3.6 million annual incentive payout for 2014, according to the filing. Chief Financial Officer Martin Schroeter and three other executives or advisers were also listed as getting smaller annual incentive payouts.

Rometty will receive a base salary of $1.6 million for 2015. This is her first rise in pay from the $1.5 million she got each of the last three years after taking up the post of CEO at the beginning of 2012.

She will also get a target annual incentive award of $5 million for 2015 and a long-term stock grant worth $13.3 million, which would be payable in 2018, according to the filing.

IBM last year withdrew its long-term plan to hit $20 per share in operating earnings for 2015 as it failed to get the sort of focus on higher-margin businesses such as security software and cloud services.

IBM has been divesting underperforming businesses in an attempt to move into the new era of cloud computing, a struggle shared by other established technology leaders.

No bonuses for the lesser suits, but at least they are not being fired.

Tim Cook is gay – so what?

tim-cook-glareThis morning the Tame Apple Press is full of praise for Apple CEO Tim Cook “coming out as gay as if it is really important.

Writing in Bloomberg Businessweek, Apple CEO Tim Cook, unprompted, has said that he is gay. It was news that comes as no surprise to anyone, so why in 2014 was it news?

Cook’s sexuality has been known  for ages, in fact when he took over, I mentioned it in his biography only to have it cut out by the news editor. “Who the hell cares?” he diplomatically pointed out. Indeed.

If Cook had come out in Oscar Wilde’s time, when it was illegal, it would be news. However, this is 2014 and being gay is normal. The sort of people who do not think it is normal are the sort of people who have all sorts of undesirable prejudices and no one wants to be like. Even the concept of “coming out” is a relic of a time when homosexuality had to be secret and not considered normal.

Why does it matter? The Tame Apple Press says that such an announcement will “save lives” because kids will no longer be bullied for their sexuality. After all if Tim Cook can come out then the other kids will say “It is ok the guy who makes our great gadgets is gay so we will accept you”. Clearly the Tame Apple Press has no understanding of the minds of bullies.

So if it does not really make a difference why is Cook saying it?

Apple has been in the press a lot lately and the news has not been good. Its iPhone 6 bent and caught fire, it was implicated in the bankruptcy of its Sapphire Glass maker, Apple Pay was rejected by retailers, its iCloud was hacked and celebrities had their naked selfies exposed, the iWatch is late and will probably be a turkey.

Fairly or unfairly there are mutterings are that “none of this would happen under Jobs” and “Apple is not the same”,

The feeling is that Apple needs a “personality” as a leader and Cook is decidedly lacking in that regard. This announcement was like a back-story episode in Season 2 of a sci-fi drama. We have known that someone is two dimensionally evil, hates aliens, or has a phobia about custard, but in this episode we are shown the reason. This is “fleshing out of the character” is not designed to provide information, but is supposed to make a 2D character more three-dimensional.

The problem is that Tim Cook’s only back-story is that he is gay – the very thing that for the last two decades humanity in the Western world has decided is normal. As a result, he is still as two dimensional as his phones because really… who cares what Cook bonks?

 

Sharp announces new head honcho

sharplogoSharp has announced that it has made Kozo Takahashi its new president and CEO.

The Japanese company, which last week reported a loss of $5.4 billion, has said that the current executive vice president will take the president and CEO title from 25 June.

The announcement as part of a business reorganisation aimed at helping the company return to a profit in March 2014.

The company also needs to make repayments for a new loan in September.

Last week it was reported that the company was planning to axe 5,000 of its 51,000 workers over the next three years in China and Malaysia as well as halving the number of workers at its head offices and cutting its board members by half.

Avnet says bye to Magirus man

avnettsAvnet has waved goodbye to Fabian von Kuenheim.

The CEO of Magirus, which was acquired by the distie in October last year, is said to be moving on to pursue “new entrepreneurial challenges”.

Avnet said in a statement that von Kuenheim had played a key role in the initial integration of Magirus into the company. It added that he would continue to provide advisory support to Avnet for a transitional period until September 2013.

Graeme Watt, president of Avnet Technology Solutions, EMEA said the Magirus integration was going to plan and the company was “making good progress” on realising the short- and long-term goals it had set out to bring together the two companies.

He said he was grateful to the work von Kuenheim had done to help with this.

von Kuenheim, who has been with Magirus for 25 years, thanked his staff and said he was proud of what the company had achieved.