Tata Consultancy Services (TCS) Managing Director (MD) and Chief Executive Officer (CEO) Rajesh Gopinathan on Thursday decided to step down to pursue other interests, unexpectedly.
The move is not expected as he has been with the company for over 22 years.
In response to his request, the board of directors TCS considered his request to be relieved of his positions, and accepted it.
Further, they have nominated K Krithivasan CEO-designate with effect from March 16, 2023.
Gopinathan plans to continue with the company till September 15, 2023, in order to provide transition and support to his successor.
TCS added over $10 billion in incremental revenues and over a $70 billion increase in market capitalisation during his six years as CEO.
After quitting as TCS CEO, Gopinathan said that he has no clue, what he will do next.
Most Stable Management Team
TCS has had only four CEOs and Krithivasan will be the fifth which is quite interesting for a company in existence for 55 years.
It cannot be denied that the IT service provider has had one of the most stable management teams in the industry.
Regarding this new update, the MD, KRChoksey Holdings, Deven Choksey said, “TCS is a large company, and such large players always have good internal candidates. I am not too worried about this sudden news. Of course the market may react in a different way,”.
No Impact On Operations
“We are surprised and shocked. Not that this will impact operations. TCS is a well-oiled company. It has always gone for internal candidates,” said one of the analysts.
Further adding, “When N Chandrasekaran (now chairman, Tata Sons) quit, Gopinathan was elevated and he was chief financial officer for the longest time then. Attrition at TCS’s senior level is very low, and even the CEO designation is an old hand there,”.
On the subject of the appointment of Krithivasan, the analyst said, “He is well-known within the company and respected too. It will be easier for him to get into the new role than when Gopinathan had to take over in 2017.”
Coming to Krithivasan, he has been part of the global technology sector for over 34 years and joined TCS in 1989.
Gopinathan noted, “I have thoroughly enjoyed my exciting 22-year tenure at TCS. It has been a pleasure working closely with Chandra, who has mentored me through this entire period.”
Further adding, “I have been harboring a few ideas on what I want to do in the next phase of my life. After deep reflection and in discussion with the chairman and the board, we decided that the end of this financial year is a good time for me to step aside and pursue those interests. Having worked with Krithi over the past two decades, I am confident he is best positioned to take TCS to greater heights along with the leadership team. I will be working closely with Krithi to give him all the support he needs.”