Infosys Asked To Pay Ex-CFO Over Rs 12 Crore As Severance: 10 Points

Infosys to pay ex-CFO Rajiv Bansal Rs 12.1 crore with interest Narayana Murthy, other founders had objected to payout to Rajiv Bansal Infosys is India's second largest IT services exporter

NDTV Profit Team

18 Sep 2018, 04:27 PM IST

Infosys co-founder Narayana Murthy had objected to the payout to Rajiv Bansal.

"While the award acknowledges that Infosys had bona fide disputes, its' counter claim for refund of previously paid severance amount of Rs. 5.2 crores 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, the country's second largest IT services exporter.
Infosys will take legal advice for necessary actions to be undertaken in respect of the award, it said.
Infosys shares ended at Rs 719.15, down Rs 7.40 or 1.02 per cent on the BSE.
The severance package of Mr Bansal, who resigned as CFO in 2015 - amounted to Rs. 17.38 crore, equal to 24 months of pay.
Out of the total Rs 17.38 crore, Infosys paid Mr Bansal Rs. 5 crore only. The subsequent payments were suspended after Mr Murthy and others objected to the severance package, terming it as excessive and that that it could be seen as "hush money".
Mr Bansal then dragged Infosys to arbitration to claim the remaining Rs 12 crore. The company had said at the time that the payment includes non-compete obligation, including other rights and obligations.
Mr 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 - Mr Sikka.
This ultimately led to an abrupt exit of Mr 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 Mr Sikka as the managing director and CEO of Infosys in January this year. (With inputs from agencies)