"In a meeting held earlier today, the Board approved appointing Mr. N R Narayana Murthy as Executive Chairman of the Board and Additional Director with effect from June 1, 2013," the company said in a release to the BSE.
Murthy gets a five-year tenure with a compensation of Rs 1 per year.
K V Kamath would step down from his position as Chairman of the Board and take up the position of Lead Independent Director effective June 1, 2013.
Murthy ‘s core team will include his son Dr Rohan Murty, as Narayana Murthy's executive assistant.
Commenting on the development Kamat said, "The Board has taken this step keeping in mind the challenges that the technology industry and the Company faces and in the interest of all stakeholders, particularly shareholders large and small, who have asked for strengthening of the executive leadership during this challenging time. Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time."
Over the last several quarters, Infosys has struggled to match peers like TCS and HCL. The stock almost dropped 20 per cent after it declared its results last quarter. Hopes would now be pinned on Murthy to revive dwindling growth rates at the company. Also read in Kannada