In connection with the resignation, infoGroup has entered into a settlement agreement with Gupta and the other parties named in a consolidated complaint against the company.
Thursday’s announcement follows last month’s decision by infoGROUP to remove Gupta as chairman because of what it termed excessive expense reimbursements and corporate spending. At that time, Gupta agreed to pay the company a settlement of $9 million.
Gupta, who founded the company, will remain on the infoGROUP board. “With everything that was going on, it was best for me to leave as CEO,” Gupta said in an interview. “I still own 40% of the company, and a friend told me it's better to be an owner than a manager.”
Gupta said that going forward he will either join a private equity firm or launch one. “I’ve seen this company through more than 50 acquisitions, so that’s what I will be doing from now on,” he said.
Bill L. Fairfield, chairman of infoGROUP and DreamField Partners, a private equity firm, has stepped in as the new CEO of infoGroup. Bernard W. Reznicek succeeds Fairfield as chairman.
Fairfield became chairman in July after the board’s Special Litigation Committee separated the roles of chairman and CEO.