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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).
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