- Strong signs for push-out forces
- After almost three years on the job
- Praise, thanks and good wishes for Rakesh
- Rakesh Khanna to take over in the interim
(management-change.com) — Troy, Michigan, November 04, 2016 — Nitin Rakesh, chief executive of Syntel, leaves. It is an abrupt change. As announced by Syntel, Inc. in a news release and in a regulatory filing published on Friday, November 04, 2016, Nitin Rakesh has already left the post as Chief Executive Officer at the provider of integrated technology and business services in a surprising move after almost three years on the job, effective October 31, 2016.
No company wants a CEO to flame out in the first years.
Rakesh’s duties are taken over in the interim by Rakesh Khanna, most recently Chief Operating Officer at Syntel, Inc.
The move is part of a management shake-up.
No reason given
In the announcement, Syntel did not explicitly explain the obviously compelling reason for Rakesh’s sudden move, leaving room for speculation.
Generally speaking, it is often a wake-up call for stockholders when a CEO leaves the position abruptly and without an understandable explanation.
Syntel said: Rakesh “has stepped down as Chief Executive Officer, President and Director of Syntel, Inc. … effective October 31, 2016”.
Precise information about the future plans of Rakesh was not immediately available.
Share price decline
The change follows a sharp decline in the share price of Syntel, Inc. since October 04, 2016.
Chaired by Bharat Desai
Syntel, Inc. is chaired by Bharat Desai.
On the job as CEO since 2014
Nitin Rakesh served as the Chief Executive Officer and President of Syntel, Inc. since April 21, 2014.
On January 31, 2014, the Board of Directors of Syntel appointed Nitin Rakesh as Chief Executive Officer and President of Syntel with an effective date of April 21, 2014.
Rakesh has served as Syntel’s President-Americas, Business Development and Near Shoring Center since September 2012.
Previously, Rakesh served as Managing Director and Chief Executive Officer of Motilal Oswal Asset Management Company, Ltd., a financial services company, from September 2008 to September 2012, as Syntel’s Vice President and Head of B&FS KPO Operations from February 2006 through September 2008, and developed and led Syntel’s knowledge process outsourcing business from 2002 through September 2008.
As a general rule, when a top leader announces to step aside with no permanent successor in place, it’s a signal that the move was unplanned and too early.
Strong signs for push-out forces
It is not completely certain what forces eventually triggered Nitin Rakesh’s move.
The Push-out Score™ determined by management-change.com suggests strong signs for push-out forces that may have contributed to the management change.
Read the full story in the management-change.com report 41.2016 ($).