Rajesh Gopinathan, the outgoing MD & CEO of Tata Consultancy Services (TCS), said, “If you have to leave, it’s always better to leave when everything is good, rather than when everyone is rooting to get you out,” in response to a TOI inquiry about whether his accelerated exit was the result of any disagreement with the company’s board leadership.
Investors and analysts were taken aback by Gopinathan’s abrupt resignation as the CEO of the IT juggernaut just one year into his second five-year term. The resignation was unexpected, according to several brokerages, including Morgan Stanley, Citi, and Motilal Oswal.
TCS arranged for Gopinathan (52) and his replacement K Krithivasan (58) to speak to the media about the sudden move before the stock market started for trade on Friday. TCS shares opened more than 1% lower but recovered to settle just 0.2% lower at Rs 3,179 per share on the BSE.
On the date of his departure, Gopinathan claimed that after intermittent conversations about moving on with TCS chairman N Chandrasekaran, he finally made up his mind a week ago. After Chandrasekaran was promoted to chairman in February 2017, Gopinathan assumed control of the organisation.
Rajesh Gopinathan, CEO of TCS, resigns; K Krithivasan will take over.
Gopinathan was reappointed for a further five years, ending in February 2027, after his initial five-year term as TCS CEO expired last year. Gopinathan, who began his career with the Tata Group in April 1996, stated that up until a week ago, it was all-consuming, and that over the last 48 hours, it has been utterly liberating. , a…………………….
“I don’t know what I’m going to do” (in the future). I never created a resume once I left school. To be who I am, Tata and TCS have been essential. They will continue to play a significant role in my life no matter what I do in the future.
When asked by TOI if he would take on an advising role within the Tata Group, Gopinathan responded that while he was in an operational job, he used to despise all advice. But his admiration for them is escalating. “I’ll wait and see if anything comes of that, but I have no intentions right now.”
Following the unexpected resignation of CEO Rajesh Gopinathan, Tata consultancy declines
According to Gopinathan’s employment contract with TCS, he must give a six-month notice period before quitting his job. On September 15, this period will come to an end, and Krithivasan will then take over as CEO.
After turning 50, Rajesh Gopinathan of TCS considered starting a second career to keep young.
In order to fully understand the business, Krithivasan said he will engage with Gopinathan over the coming months. He added that he has no immediate plans to change the organization’s current approach in a significant way. A continuum exists. While every CEO changes, TCS does not necessarily develop a new strategy or set of priorities, according to Krithivasan, who will be one of the company’s oldest CEOs.
