BENGALURU: Rajeev Mehta, who will step down as the president of Cognizant on April 1, may additionally be part of L&T at a time while the latter has set up an unsolicited bid to collect Mindtree, human beings directly aware about the problem said.
Mehta will function an adviser to Cognizant’s new CEO Brian Humphries until May 1, introduced earlier as a part of his exit plan.
Mehta is expected to assist the $18-billion construction and engineering conglomerate to chart competitive increase for IT services gadgets – L&T Infotech, L&T Technology Services, and Mindtree if the purchase bid is a success. He is likely to spearhead the combined operations when L&T merges these units ultimately, assets stated.
Mehta emerged as the top contender after L&T undertook an exhaustive leadership mapping workout to pick out the brand new face to persuade the commercial enterprise, they brought. Calls and emails to Mehta remained unanswered on the time of going to press. Queries to L&T did not elicit any response.
A -decade-antique Cognizant veteran, Mehta became a key discern in former CEO Francisco D’souza’s center team which scripted the 2020 strategy. He joined the business enterprise while it became slightly $25 million and was part of the long boom rally to $sixteen billion remaining yr. Mehta turned into appointed as president of the organization in 2016 changing his predecessor Gordon Coburn who resigned from the company after Cognizant disclosed violations to America Foreign Corrupt Practices Act (FCPA).
Phil Fersht, CEO of US-primarily based HFS Research, said, “Mehta had lived the entire Cognizant growth tale over many years and became extensively tipped to take over from D’Souza when he stepped apart. He turned into regarded internally as “Frank’s right-hand bulldog” — a toughie, an enforcer, a doer. He has verified operational leadership capability (important for what LTI/Mindtree desires) and is used tackling the shift from $2 billion to over $10 billion,” he stated.
Ten days in the past, L&T obtained the most important shareholder V G Siddhartha’s 20% stake in Mindtree, pitting the four founders in public combat in opposition to the previous. L&T has additionally located an order with agents to pick up any other 15% of the organization stocks from the marketplace. Also, it has announced an open provide for 31% of shares. If a hit, the cumulative deal for sixty-six % stake will value L&T nearly Rs eleven,000 crores, or $1.6 billion.
Mehta, who nursed CEO objectives, became given a widespread increase in his repayment remaining yr, and it turned into predicted he could stay within the corporation. He got a cash bonus of $1.3 million and constrained stock devices of $nine million. In 2017, Mehta’s goal cash incentive became $535,000 which become double of what its former CEO Francisco D’Souza obtained that year.
Fersht argued that Mehta might be a top-notch choice to guide the merged entity because of his exquisite connections, revel in and the dedication to ram those two together. “With the mid-caps like Mphasis, Virtusa, Genpact all doing nicely, there is clean evidence that this merger could be successful, however, need very robust management. Raj Mehta have to be equipped for a situation he is tailored for!” he brought.