Infosys has been asked by the arbitration tribunal to pay its ex CFO Rajiv Bansal the pending severance pay of Rs 12.17 cr. along with interest. Rajiv had separated from the company in October 2015, and had taken the company to arbitration considering the company’s refusal to pay his severance as per his employment agreement.
In a statement fined with BSE today, Infosys said:
“The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr. Rajiv Bansal. Per the award, Infosys
is required to pay Mr. Bansal the outstanding severance amount of Rs.12.17 crores with interest. 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. The arbitral award is confidential. Infosys will take legal advice for necessary actions to be undertaken in respect of the award.”
Rajiv had a long 17-year stint at Infosys, and had been its CFO for about 3 years till his exit in October 2015. He was entitled to a severance package of over Rs 17 crore as the company’s CFO. Post his exit, only a part of it ( about Rs. 5 cr.) was paid.
The quantum of severance, and the payout had been a matter of concern related to corporate governance at Infosys, and was one of the key concerns raised by founder NR Narayana Murthy.
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