Sep 18: With the arbitration panel spelling out its ruling in favour of Rajiv Bansal, the former CFO of the Indian tech major Infosys, the technology company will have to part with an amount of Rs 12.17 crore along with interest.
The company has informed the bourses in a filing that it will have to pay Rajiv Bansal an outstanding amount of Rs 12.17 with interest following the arbitration panel’s decision in connection with the the severance agreement between itself and the former CFO. It may be recalled that Infosys had withheld an amount of Rs 12.2 crore out of the total severance pay package of Rs 17.38 crore, pending clarifications on the terms of the severance contract.
Rajiv Bansal was to lose Rs 12.2 crore, and he went ahead and took Infosys to arbitration. The company then had filed a counter claim against Bansal asking for the refund of the previously paid severance of Rs 5.2 crore and other damages. The arbitration panel, while ruling in favour of Bansal, has quashed the company’s counter claim too.
The whole corporate drama has unfurled after Infosys founders N R Narayana Murthy, Kris Gopalakrishnan and Nandan Nilekani had expressed concerns with the board over the deteriorating corporate governance standards at the company. The founders had in their letter to the board expressed worry over high salaries and severance pay to top executives.
Following this, the salary drawn by the former CEO Vishal Sikka, and Rajiv Bansal’s severance pay package had become a topic of discussion in corporate circles. After Bansal quit Infosys in October 2015, a severance package was agreed at Rs 17.38 crore, equalling his 24 months’ pay, out of which just Rs 5.2 crore was given to him.
It is likely that the company would now seek legal advice on the ruling.