Rise & fall of Vikram Akula in SKS MicrofinanceBusiness News

November 23, 2011 14:50
Rise & fall of Vikram Akula in SKS Microfinance

Vikram Akula, the man who exploited the microfinance market with his SKS Micro finance and had given sleepless nights to his detractors and contemporaries alike, had to yield to the pressures of the company’s board and if sources are to be believed then, he plans a decent exit from heading the board and the company on the whole as per media reports, on Wednesday. The SKS board, which will meet today, is likely to discuss Mr. Akula's resignation and also deliberate on the terms of a settlement.

Some members of the SKS board have been pressing Mr. Akula to step down as executive chairman on the ground that his frequent travels made it difficult for him to function as a full-time executive. Apart from this there were some differences in the strategies adopted by him over the diversification of the core functions of the company into businesses like loans against gold and selling life insurance products. The SKS scrip fell 4.99% on Tuesday to end at a new low of Rs110.50. SKS was the only listed Microfinance Company. Mr. Akula’s settlement includes a cash component of about Rs 5 Cr and protection of employee stock options valued at about Rs 9 Cr," said the anonymous source.

Vikram Akula is the Founder and CEO of SKS Microfinance, one of the leading microfinance institutions in the world.  A former management consultant with McKinsey & Company, Vikram holds a B.A. from Tufts, an M.A. from Yale, a Ph.D. from the University of Chicago, and was a Fulbright Scholar. He has received several awards, including the Schwab Social Entrepreneur of the Year (India), the Ernst & Young Start Up Entrepreneur of the Year (India) and he has been profiled in media ranging from CNN to front page of the Wall Street Journal.  In 2006, Vikram was named by TIME Magazine as one of the world’s 100 most influential people.

If sources are to be believed then PH Ravikumar, an independent director on its board and former chief executive of NCDEX, will become the company's non-executive chairman.

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