Infosys told to pay ex-CFO Rs12.17 cr severance package dues
18 Sep 2018
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Infosys Ltd, a global leader in consulting, technology and next-generation services, today an arbitration tribunal ruled in favour of former chief financial officer Rajiv Bansal over his disputed severance package and ordered the company to pay the Rs12.17 crore held back by the company.
Infosys had withheld payment due to Bansal after its co-founder Narayana Murthy raised objections to the large payout to Rajiv Bansal.
Murthy, in a public spat last year, had questioned the heavy package approved to Bansal by the then management led by Vishal Sikka, who was at the time the chief executive officer (CEO) and managing director.
According to the arbitral tribunal's order, the IT company is now required to pay Bansal the outstanding severance amount of Rs12.17 crore along with interest.
"While the award acknowledges that Infosys had bona fide disputes, its' counter claim for refund of previously paid severance amount of Rs5.2 crore and damages, has been rejected," Infosys said in a regulatory filing with the Bombay Stock Exchange (BSE).
The arbitral award, however, is confidential, said Infosys, adding that it would take legal advice for necessary actions to be undertaken in respect of the award, it said.
Out of the total Rs17.38 crore that was due to Bansal, Infosys paid Rs5 crore and suspended subsequent payments after Murthy and others objected to the severance package, terming it as excessive and that that it could be seen as "hush money".
Bansal then dragged Infosys to arbitration to claim the remaining Rs12 crore. The company had said at the time that the payment includes non-compete obligation, including other rights and obligations.
Murthy had repeatedly raised issues of corporate governance at the company that he co-founded while it was being headed for the first time by an outsider - Sikka.
This ultimately led to an abrupt exit of Sikka after a prolonged standoff with Infosys' promoters.
Co-founder Nandan Nilekani then assumed charge as the non-executive chairman of Infosys in August 2017. Salil Parekh, a former Capgemini executive, succeeded Sikka as the managing director and CEO of Infosys in January this year.
