Nasdaq listed software services firm iGate has sacked its president and CEO Phaneesh Murthy on charges of sexual harassment against him which is being investigated.
“The Board’s decision was made as a result of an investigation by outside legal counsel, engaged by the Board, of the facts and circumstances surrounding a relationship Mr. Murthy had with a subordinate employee and a claim of sexual harassment,” said a company statement.
This could most likely finish his career, who was terminated from Infosys on similar charges in 2003. In 2002, Reka Maximovich, a Bulgarian American, charged Murthy of sexual harrassment following which Murthy was asked to leave the company. Infosys settled the suit for $3 million paid to Maximovich.
Murthy,50, will receive $6000 per month from iGate as termination benefits until he is 65, iGate said in an SEC filing.
“The investigation, which is ongoing, has reached the finding that Mr. Murthy’s failure to report this relationship violated iGATE’s policy, as well as Mr. Murthy’s employment contract. The investigation has not uncovered any violation of iGATE’s harassment policy,” the statement said.
IT veteran Gerhard Watzinger, 52, will be the interim Chief Executive while the board looks for a new CEO.
Mr Murthy was supposedly on a comeback trail after the Infosys scandal in 2003. While he was CEO at iGate, the company acquired India’s 6th largest software services company Patni Computer Systems for a seat at the table for bigger deals in 2011. Patni was then delisted from the Indian bourses and iGate became a billion dollar company.