Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of iGATE (NASDAQ:IGTE) have gotten crushed today -- down by 13% at the low -- after the company abruptly fired its CEO.
So what: The company terminated CEO Phaneesh Murthy, effective immediately, due to an undisclosed relationship with a subordinate employee that included sexual harassment allegations. The ongoing investigation concluded that Murthy failed to disclose the relationship, a violation of company policy. The investigation did not find any violation of iGATE's harassment policy.
Now what: Co-founder and Co-Chairman Sunil Wadhwani said the board "deliberated extensively" about the decision, since Murthy has contributed greatly to the company over the past 10 years. iGATE reiterated that Murthy's departure is unrelated to the company's operational or financial performance. Gerhard Watzinger has been appointed as interim CEO until a permanent CEO is found (Watzinger is not interested in assuming the role permanently).
Interested in more info on iGATE? Add it to your watchlist by clicking here.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.