iGATE Fires CEO for Not Reporting Relationship With Employee
In the midst of an investigation into his relationship with a subordinate employee and a claim of sexual harassment, the iGATE board of directors has terminated the contract of president and CEO Phaneesh Murthy, effective immediately, the company announced Monday.
iGATE has appointed Gerhard Watzinger, a former iGATE executive, to fill the CEO position on an interim basis.
According to the company's press release, the investigation by outside legal counsel engaged by the board has found that Murthy engaged in a relationship with an employee and failed to report it to iGATE's board in violation of his contract and iGATE policy. While the investigation continues, it has "not uncovered any violation of iGATE's harassment policy," according to the company.
In response to the board's decision, iGATE co-founder and co-chairman of the board Sunil Wadhwani said, "We recognize the significant contributions Mr. Murthy has provided over the past ten years in helping to establish iGATE as a leader in the IT industry. However, as a result of this violation of iGATE policy, we asked Mr. Murthy to step down."
Watzinger was formerly CEO of iGATE Solutions during his tenure with the company from 1998 to 2003. Prior to returning to iGATE, Watzinger was executive vice president and chief strategy officer with Intel's McAfee division. Watzinger has removed himself from consideration for the permanent CEO position at iGATE.
The article iGATE Fires CEO for Not Reporting Relationship With Employee originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.