The Rise, The Fall, Then The Rise And Again The Fall of Phaneesh Murthy


Murthy’s golden era at Infosys started from 1995 to 2002. He was popularly called ‘the other Murthy’ and was so close to Naranaya Murthy and Nandan Nilekani. He quickly rose through the ranks to head global operations from California; later on was appointed as the director of Infosys and Infosys BPO in May 2000.

By the time he reached unassailable heights, Infosys had spectacularly grown as their profits rose from just $2 million to $700 million.

The First Fall of Murthy:

In 2002, Muthy faced his ‘first’ sexual harassment lawsuit filed by his former secretary Reka Maximovitch. The ill-judged relationship made Infosys to opt for an out-of-court settlement for $3 million with Bulgarian-American national.

This created a huge disruption throughout the Infosys board, as Murthy’s wife Jaya, who also an IIM-A alumnus, had to quit the board of Infosys Foundation and the relations between the Infosys promoters and Murthy stayed frozen.

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