Online retail giant Flipkart (now owned by Walmart) is considering appointing a new group CEO, according to a Livemint report.
The company’s co-founder and current group chief executive officer (CEO), Binny Bansal took over the chairperson’s role after the departure of Sachin Bansal, who left citing differences with the company’s board.
Apart from being an extensive e-commerce platform, Flipkart also owns e-retail fashion brands like Myntra and Jabong, and mobile payment firm PhonePe.
Walmart, which owns 77 percent of Flipkart, is now considering a move to separate the responsibilities of the chairperson and group CEO. For this, Walmart is looking at both internal and external alternatives.
Rumours have it that the company is also considering current Flipkart CEO Kalyan Krishnamurthy as one of the candidates.
The plan to name a new group CEO has come up partly because Binny Bansal is not actively involved in the daily operations of the company. However, despite the change in hierarchy, he will remain the chairperson of the company.
Walmart holds the rights to appoint a new Flipkart CEO in the event of a vacancy, according to a recent regulatory filing.
In case Binny Bansal chooses to leave, he is bound by a non-compete clause that restricts him from working with any of Flipkart’s competitors for 18 months from the date of his departure or from the date his shareholding in Flipkart falls below 2 percent.
Though the plan to name a new group CEO has not been finalised, one can be speculative as recently Walmart made a lot of changes in the organisational structure at Flipkart. The US retail giant moved several of its leaders to senior positions at the group level at its Indian counterpart.
If Flipkart does name a new group CEO in the coming days, it will mark the company’s fourth leadership transition in recent years.
Earlier in 2015, Flipkart underwent a massive reshuffle that resulted in the company being split into three divisions, which were then run by former CEO Sachin Bansal, current chairperson Binny Bansal and Myntra co-founder Mukesh Bansal.
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