Majesco CEO Ketan Mehta leaves post at short notice

  • Push-out Score suggests push-out forces
  • After around seven years in the position
  • Adam Elster taking over
  • Mehta will remain as Chairman at Majesco
  • Mehta said 93 words

(exechange) — Morristown, New Jersey, September 25, 2018 — Ketan Mehta, chief executive of Majesco, leaves the position. It is a change at short notice. As announced by Majesco in a news release and in a regulatory filing published on Tuesday, September 25, 2018, Ketan Bansilal Mehta leaves his post as Chief Executive Officer at the maker of insurance technology software after around seven years in the role, effective October 1, 2018.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9 years, according to data compiled by exechange.

Mehta’s duties will be taken over by Adam Elster, most recently President, Global Field Operations of CA Technologies.

The fact that Mehta’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.

No reason given

In the announcement, Majesco did not explicitly explain the reason for Mehta’s imminent move, leaving room for speculation.

Mehta will remain as Chairman at Majesco

“Ketan Mehta, Majesco Co-Founder and current CEO, has decided to retire from the operational role after 36 years of service and will continue to serve Majesco as the Chairman of the company’s Board of Directors,” Majesco said.

Wake-up call

Generally speaking, it is often a wake-up call for stockholders when a CEO leaves the position at short notice and without comprehensible reasons being given.

Chaired by Arun K. Maheshwari

Majesco is chaired by Arun K. Maheshwari.

Arun K. Maheshwari is the Chairman of Majesco and has served as a director and chairman of the board of directors of Majesco since January 2015. Maheshwari has also served as a director of Mastek since 2013.

Maheshwari will continue to serve as a director of Majesco after passing on the Chairman role to Ketan Mehta.

In the position of CEO since 2011

Mehta has served as President of Majesco since 2000, as CEO of Majesco since July 2011 and as a member of the Company’s Board since 1992.

Mehta co-founded Mastek Limited in 1982 and has served as a member of Mastek Limited’s board of directors from 1982 until June 1, 2015.

Mastek Limited is a public limited company domiciled in India whose equity shares are listed on the BSE Limited and the National Stock Exchange of India Limited.

Majesco was a wholly-owned subsidiary of Mastek Limited prior to the de-merger in June 2015 of the insurance products and services business of Mastek Limited into Majesco Limited.

Mehta was a member of the Nomination and Remuneration Committee of Mastek Limited from October 5, 2007 until June 1, 2015 and a member of the Governance Committee from January 7, 2009 until June 1, 2015.

During his tenure of over 32 years with Mastek Limited and its affiliates, Mehta has handled multiple functions including sales, delivery and general management.

Mehta is the driving force behind the conceptualization and the execution of Majesco’s insurance strategy, including acquisition and integration of four insurance technology companies over the last nine years.

Prior to that, Mehta also spearheaded Mastek Limited’s joint venture with Deloitte Consulting.

Mehta holds a PGDM (MBA degree-equivalent) from IIM Ahmedabad.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Ketan Mehta’s imminent move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.

Read the full story in the exechange report 40.2018 ($).