Phaneesh Murthy sacked again on sexual harassment charges

iGate Corp has sacked Chief Executive Officer Phaneesh Murthy after a sexual harassment case was filed against him by a company employee. This is the second time Murthy has been caught in a sexual harassment case. In his earlier stint at Infosys, Murthy had faced similar charges made by his personal secretary Reka Maximovitch. The case was later settled out of court for a sum of $3 million.

"The board's decision was made as a result of an investigation by outside legal counsel, engaged by the board, of the facts and circumstances surrounding a relationship Murthy had with a subordinate employee and a claim of sexual harassment," said a company statement. The investigation reached the finding that Murthy's failure to report this relationship violated iGate's policy, as well as Murthy's employment contract.

"The board deliberated extensively on this matter," said Sunil Wadhwani, co-founder and co-chairman of the iGate board. "We recognize the significant contributions Murthy has provided over the past 10 years in helping to establish iGate as a leader in the IT industry. However, as a result of this violation of iGate policy, we asked Murthy to step down."

The company has appointed Gerhard Watzinger as interim chief executive with immediate effect, the iGate statement stated further.